What happened
Reco secured a $55 million extension to its February Series B round, raising total funding to $140 million. The round added AT&T Ventures, Forestay and Quadrille Capital as investors. The company said its valuation has more than doubled since the February announcement, estimating it in the high hundreds of millions of dollars.
The Ukrainian tech news outlet UA.News reported that Reco, a startup focused on protecting SaaS and AI platforms, closed a $55 million extension to its Series B financing. The extension was led by AT&T’s venture arm, with participation from Forestay and Quadrille Capital. Co‑founder and CEO Ofer Klein said the company’s valuation has more than doubled since the February round, placing it in the upper hundreds of millions of dollars, though no exact figure was disclosed.
Reco’s product, originally marketed as software for discovering and protecting SaaS and AI platforms, has been repositioned as a broader AI‑agent control solution. The platform builds a context graph that links agents to applications, people, accounts, and permissions, allowing security teams to see what each agent can access and to revoke unnecessary privileges. The company claims it can add new integrations within several days and uses browser and network signals to detect agents outside directly connected applications.
Klein highlighted two client examples: a Fortune 100 firm where Reco’s system uncovered 21,000 previously unknown agents, and a major financial‑sector client where the platform identified an agent created by a former employee that had access to Salesforce and could exfiltrate data to an unfamiliar domain. Reco reports having more than 100 customers, with financial institutions accounting for roughly 40 % of its revenue. The startup estimates its current annual recurring revenue at “tens of millions” of dollars and plans to triple that figure within the year, using the new funds for hiring, sales, partnerships, and customer support.
Why it matters
The infusion of capital underscores growing market demand for tools that can monitor and restrict AI agents operating within complex SaaS ecosystems. Reco’s platform, which maps agents to applications, accounts, and permissions via a context graph, aims to give security teams visibility into thousands of autonomous processes that would otherwise remain hidden. By identifying 21,000 unknown agents at a Fortune 100 client and an unauthorized agent at a financial‑services customer, Reco demonstrates a concrete risk that many enterprises may be unaware of. As AI agents become more prevalent in business workflows, the ability to audit, control, and revoke their access could become a critical component of broader cybersecurity strategies, especially for regulated sectors such as finance and healthcare.
The rapid deployment of AI agents across enterprises creates a visibility gap that traditional security tools are not designed to address. Reco’s approach of mapping agents to a context graph provides a systematic way to inventory and manage these autonomous processes, which could become a new attack surface if left unchecked.
Regulated industries such as finance, healthcare, and government are under heightened scrutiny to protect data and maintain compliance. The ability to detect rogue or orphaned agents—especially those with privileged access—directly supports risk‑management and audit requirements, potentially reducing the likelihood of data breaches or insider threats.
The involvement of AT&T Ventures signals interest from large telecom and infrastructure players in the AI‑agent security space, suggesting that the market may see broader adoption of such solutions as part of enterprise security stacks. This funding round also positions Reco alongside other AI‑security startups that have recently raised capital, indicating a growing investment trend focused on safeguarding autonomous AI workloads.
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What to watch next
Future developments to monitor include Reco’s rollout of new integrations beyond its current 280‑plus applications, the scaling of its browser‑ and network‑signal detection methods, and any partnerships that extend its reach into larger enterprise environments. Investors and competitors will also watch whether Reco can translate its reported “tens of millions” in ARR into the projected three‑fold growth this year, which would validate the market’s appetite for AI‑agent‑focused security solutions.
Integration rollout: Reco’s claim of adding new application integrations within days will be tested as it expands beyond its current 280‑plus connections. Successful scaling could make the platform more attractive to large enterprises with heterogeneous SaaS environments.
Revenue growth: The company’s projection to triple its ARR will be a key metric for investors and competitors. Quarterly financial disclosures or customer case studies will provide evidence of whether the platform can convert visibility into recurring revenue.
Partnerships and ecosystem play: AT&T’s involvement may lead to joint offerings that embed Reco’s technology into telecom‑managed services or cloud platforms. Monitoring any announced collaborations will reveal how the solution fits into broader security ecosystems.