AI Agent Security Startup Reco Raises $55M

What happened

AI security startup Reco has pivoted from its core business of SaaS and AI platform mapping protection to become an end-to-end AI Agent security solution provider. Its context graph-based product connects agents with associated applications, personnel, accounts and permissions, enabling security teams to map an agent's accessible scope and cut off unnecessary access. The company announced it has closed $55 million in funding, with backers including AT&T's venture arm, Forestay, and Quadrille Capital. Reco currently boasts annual recurring revenue in the tens of millions of US dollars, and its valuation has more than doubled since its Series B round in February.

Key facts

Funding amount

$55 million

Total funding to date

$140 million

Investors

AT&T venture arm, Forestay, Quadrille Capital

Existing customer base

Over 100 customers, ~40% from the financial sector

Product integration scale

Integrated with over 280 applications

Background

As enterprises roll out AI Agents at scale, a new problem of 'AI sprawl' has emerged. Public venture databases show at least 20 competing AI Agent security vendors, leading to rapid overcrowding in the sector. Leading security vendors are also developing related detection and response capabilities.

Why it matters

For the industry, AI Agent security has moved from proof-of-concept to an essential enterprise requirement, intensifying competition in the track. For developers and enterprise security teams, such tools can help identify unrecorded hidden agents and reduce risks of unauthorized access and data leaks. For end users, improved enterprise-side protection can further reduce the chance of sensitive personal data being accidentally accessed or improperly shared by agents.

In their words

“Current market demand for agent security extends beyond the agent itself, covering the entire end-to-end ecosystem.”

Reco Co-founder & CEO Ofer Klein

What to watch

Watch for product iteration, customer expansion progress after Reco deploys the new funding, as well as the differentiation strategies of competing vendors in the crowded track.