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