Reco Raises $55M to Secure AI Agent Sprawl as Rivals Crowd In

Reco has raised $55 million, its second round this year, as security buyers confront a new problem: swarms of AI agents operating across corporate networks with little oversight. The extension builds on a $30 million Series B the startup announced in February. AT&T, a Reco customer, invested through its venture arm, joined by Forestay and Quadrille Capital.

The round lands in a crowded field. A quick scan of Crunchbase and PitchBook profiles turns up at least two dozen companies selling some form of AI agent security. Some vet the tools agents use. Others help companies control what data their agents can reach. CrowdStrike is building detection and response controls on the devices where agents run. Another cluster of vendors focuses on finding and resolving unapproved AI usage.

The pitches sound alike. Nearly all promise discovery and governance of agents through knowledge graphs, continuous monitoring, runtime security, tool access controls, and MCP vetting.

Reco itself pivoted into this market. Until last year, the startup mostly sold software to map and secure SaaS and AI platforms. It has since repositioned around a broader solution that uses a context graph to connect agents to apps, people, accounts, and permissions, giving security teams a way to see what an agent can reach and cut off access it doesn't need.

Co-founder and CEO Ofer Klein said the biggest change over the past year was that companies now build and deploy AI agents faster than they can track them. He offered two examples from Reco's own deployments. At one Fortune 100 customer, the platform found 21,000 agents the company didn't know about. At a large financial services customer, Reco says it identified an agent set up by an ex-employee that could access Salesforce and share that data with a domain the company couldn't see.

"The market demand right now for agent security is not only about the agent itself; it's about the entire ecosystem end-to-end," Klein told TechCrunch in an exclusive interview.

Agents in production, risks at scale

Other executives in the sector describe the same urgency. Chris Sestito, co-founder and CEO of HiddenLayer, said earlier this month that when agents reach production, the scale of their costs and risk goes from theoretical to "full scale really quickly." More than 50 of his customers have AI agents in production touching critical systems and sensitive assets, he said.

Cymphony, another AI startup, reported that at one U.S. public company it found roughly 85,000 files that had become accessible to AI tools and agents.

The numbers behind the round

Klein said Reco's valuation has "more than doubled" since the Series B was announced in February. He put it vaguely in the "high hundreds of millions" without sharing specifics. Annual recurring revenue sits in the "double-digit millions of dollars," and Klein expects it to triple this year. The startup has more than 100 customers; financial services companies account for about 40% of the business.

The new funding brings Reco's total capital raised to $140 million. The company plans to spend it on hiring, sales, partnerships, and customer support.

The differentiation bet

Reco's wager is that its existing coverage of SaaS apps — and the AI agents those apps increasingly ship — will set it apart from the pack. The platform integrates with more than 280 apps, and Klein says new integrations can be added within days. It also uses browser and network signals to find agents operating outside apps it connects to directly, and it has controls to inspect prompts and tool calls.

That breadth will be tested. With two dozen-plus vendors chasing the same budget line and enterprise agent deployments still accelerating, Reco's assumption is that security teams will pick platforms that can see everything an agent touches, not just the agent itself. Its tripled-revenue forecast for this year is the first checkpoint on whether that bet pays off.