Reco, a startup that helps companies secure AI agents and SaaS platforms, has just raised $55 million in new funding as worries over AI agent proliferation intensify. The raise comes just months after their February Series B; total funding now stands at approximately $140 million. Reco counts AT&T, Forestay and Quadrille Capital among its investors in this round. Its annual recurring revenue is in the “double-digit millions” and is expected to triple in the coming year. Reco serves over 100 customers, about 40% of which are in financial services. The company’s valuation has more than doubled since the last funding round, placing it in the “high hundreds of millions”.
AI Agent Sprawl Spurs Security Innovation
As enterprises deploy AI agents at scale, chief information security officers are confronting what’s being termed “agent security” — the challenge of overseeing multiple autonomous agents that can access systems, apps, data, and accounts. A review of profiles on Crunchbase and PitchBook reveals at least two dozen startups developing tools for this new threat landscape, with different approaches: monitoring which tools agents use; controlling what data agents can reach; measuring or policing unapproved agent behavior; or detecting agents running on devices.
Reco, which until recently focused primarily on mapping and securing SaaS and AI platforms, has repositioned to offer broader protections. Its current platform builds connections between agents, apps, people, permissions, and accounts using a “context graph.” This allows security teams to clearly see an agent’s reach and cut off access when necessary. In one large customer account, Reco discovered 21,000 agents that the company was unaware existed. In another financial services client, Reco uncovered an agent, set up by an ex-employee, that had access to Salesforce and could share data with an external domain the client couldn’t monitor.
Competitive Pressures and Market Dynamics
Other startups are far from relaxing. HiddenLayer reports that over 50 of its customers have AI agents in production interacting with critical systems and sensitive data. Another firm, Cymphony, found upwards of 85,000 files exposed to AI tools and agents at a U.S.-based public company. These figures underscore the urgency in securing not just the agents themselves but their ecosystems — what they touch, what they can access, what they can do.
Reco’s platform already integrates with more than 280 apps, and the company says new integrations can be added within days. Its technology also processes browser and network signals to detect agents even outside the connected apps, with controls to inspect prompts and tool calls. The freshly raised funding will be put toward hiring, sales, partnerships, and customer support.
This round of investment reflects an emerging inflection point: security teams can no longer treat AI agents as experimental. As deployment scales, the unseen agents in customers’ systems represent a growing liability — not just from data leakage, but from misuse, exposure, or compliance risk. The crowded field of agent security startups is racing to define how to monitor, govern, and remediate agent behavior in real time. Reco’s expanded platform and strong traction suggest it’s staking a leading claim in shaping what agent security will look like in practice — but competition and continual risk evolution mean this is far from settled territory.
What to watch: how effectively Reco can maintain visibility as agents proliferate across diverse environments like on-prem, cloud, IoT. Also critical will be regulation and standards — how auditors, privacy laws, and corporate governance catch up to this new breed of risk.
