Enterprise software security company Reco completes $55 million Series B extension, total funding reaches $140 million
Reco adds $55 million to Series B funding
Enterprise software security company Reco has completed a $55 million extension to its Series B funding, bringing its total funding to $140 million. The funds will be used for hiring, sales, partnerships, and customer support, as the company expands its product from software-as-a-service to AI agent governance.
This round follows a $30 million Series B funding in February and is not a new round. New investors include AT&T Ventures, Forestay, and Quadrille Capital. AT&T initially became a customer before investing through its venture capital arm. Existing shareholders include Insight Partners, Boldstart Ventures, Workday Ventures, TIAA Ventures, Zeev Ventures, and S Ventures. CEO Ofer Klein stated that the valuation has more than doubled since the announcement in February, now in the hundreds of millions, but did not provide an exact figure.
The annual recurring revenue is currently in the tens of millions, and he expects it to triple this year. The company has over 100 customers, with approximately 40% in financial services. Founded in 2020 by Ofer Klein, Gal Nakash, and Tal Shapira, the company has about 140 employees, roughly split between Israel and the U.S. The platform connects to over 280 applications, with new integrations possible within days; it is also reported that it can detect and control around 1,000 agents, with deployment taking less than 48 hours. Coverage includes OpenAI, Anthropic, Microsoft Copilot, Salesforce Agentforce, Workday, and in September partnered with ServiceNow to cover its agent Otto.
Klein noted that the speed of enterprise agent deployment has outpaced inventory checks over the past year. A Fortune 100 customer was found to have 21,000 previously unaccounted agents on the platform. A large financial services client was discovered to have agents set up by former employees that could access Salesforce and share data with domains invisible to the company. The platform uses context maps to connect agents to applications, personnel, accounts, and permissions, allowing security teams to see the reach and cut off excess permissions; browser and network signals are used to discover agents not directly connected and check prompts and tool calls.
In the public database, there are at least twenty companies selling some form of agent security. Air raised $50 million to review agent call skills and plugins; Sequoia invested in Cymphony, which found about 85,000 files accessed by AI tools and agents in a U.S. public company; HiddenLayer raised $100 million, claiming over 50 clients have agents accessing critical systems and sensitive assets; CrowdStrike focuses on endpoint detection and response, while Zenity specializes in unauthorized AI use. Reco bets that its existing software-as-a-service coverage can differentiate it from this batch of homogeneous promises.
The buyers include AT&T, which converts customer identities into equity, and financial investors looking to establish a position in the agent listing business; the sellers are enterprise security teams treating unaccounted agents as budget gaps. This is an event-driven primary market markup, not a public market transaction. The money flows into hiring and channels, not model training. Beneficiaries are vendors with existing software connections that can convert discovery volumes into orders; those under pressure are vendors that only sell endpoints or shadow AI, but are compared by clients to competitors with an "end-to-end ecosystem." The valuation doubling occurs while revenue is still in the tens of millions, with pricing based on inventory gaps, not profits.
The February round brought total funding to $85 million, and this round of $55 million brings it to $140 million. The A round in 2022 raised $30 million, with another $25 million expected in April 2025. All four rounds revolve around the same software connection map, just changing the billing target from application accounts to agents.
Source: Public information
ABAB AI Insight
Reco was founded in 2020 by Ofer Klein, Gal Nakash, and Tal Shapira, initially selling software-as-a-service and AI platform discovery and permission maps, not agent runtime protection. The 2022 A round raised $30 million, with an additional $25 million expected in April 2025, totaling $55 million, and the February 2026 B round raised $30 million, bringing the total to $85 million. The path is to first occupy application interfaces, then change the product name after clients create their own agents. Klein's two publicly disclosed cases are both discoveries, not interceptions: 21,000 unaccounted agents in a Fortune 100 account, and agents left by former employees in a financial client accessing Salesforce.
In this round of $55 million, AT&T Ventures is a customer turned shareholder, Workday Ventures was already among the existing shareholders, and ServiceNow appeared through the Otto collaboration. The funds are explicitly allocated for sales, channels, partnerships, and customer support, not for training foundational models. The motivation is to turn access to over 280 applications into a default entry point for agent listings: enterprises first have Copilot, Agentforce, and Otto, then buy governance from the same vendor already integrated with these systems. Financial investors are buying into the tens of millions of annual recurring revenue, which is said to triple this year, and a valuation that has more than doubled since February, now in the hundreds of millions.
In contrast, CrowdStrike has expanded Falcon from endpoint detection to agents, Zenity specializes in unauthorized AI, Air raised $50 million to review agent skills, HiddenLayer raised $100 million to bet on model and deployment risks, and Cymphony, after Sequoia's investment, used file exposure as a case study. The industry is not in zero education but in a control period: at least twenty vendors are using knowledge graphs, continuous monitoring, runtime, and tool permissions to convey the same message. Reco's position is that a software-as-a-service security vendor is now selling agent security, with an advantage in connection density, but a shortcoming in that discovery cases have not yet been independently audited.
Structurally, this is a shift in control points within the restructured industry chain. Agents first gain access to applications, identities, and data, and enterprises later supplement the list, thus shifting budgets from endpoint protection to "who first draws the agent-account-permission map." The mechanism is that software vendors embed agents into existing seats, forcing security budgets to follow interfaces; customer equity locks procurement relationships into capital tables. Whoever owns the application connectors will first encounter those 21,000 unclaimed agents.
ABAB News · Cognitive Law
Agents go online first, inventory is supplemented later.
Customer equity means turning contracts into equity.
Whoever holds the interfaces, the budget follows.