AI security startup Reco said Tuesday it raised $55 million, building on a $30 million Series B announced in February. The new funding brings Reco's total capital raised to $140 million. AT&T;, a customer, invested in the extension through its venture arm, as did Forestay and Quadrille Capital.
Reco has repositioned around a broader solution that uses a context graph to connect agents to apps, people, accounts, and permissions. Co-founder and CEO Ofer Klein said the platform found 21,000 agents at one Fortune 100 customer that the company did not know about. At a large financial services customer, Reco claims it identified an agent set up by an ex-employee that could access Salesforce and share data with a domain the company could not see. The startup has more than 100 customers, with financial services companies accounting for about 40% of the business.
The raise reflects investor interest in a crowded market. TechCrunch reports at least two dozen companies selling some form of AI agent security, with promises involving knowledge graphs, continuous monitoring, runtime security, tool access, and MCP vetting. Reco's bet is that its existing coverage of SaaS apps and AI agents will help it stand out. The company integrates with more than 280 apps, and Klein said new integrations can be added within days.
Klein said the company's valuation has "more than doubled" since February and estimated it in the "high hundreds of millions," though he would not share specifics. Annual recurring revenue is in the "double-digit millions of dollars," and he expects it to triple this year. The startup will use the new funding for hiring, sales, partnerships, and customer support. Specific valuation, revenue figures, and customer growth beyond the stated totals remain undisclosed.