Reco AI has raised a $55 million Series B extension, bringing its total funding to $140 million. The startup is shifting its focus from SaaS application visibility to governing AI agents, identities, and access at scale.
TL;DR
- Reco AI has raised $140 million to expand its platform for governing AI agents across enterprise SaaS environments.
- The company is shifting its focus from SaaS application visibility to governing AI agents, identities, and access at scale.
- Reco AI's strategy places it in a crowded market, with competitors like HiddenLayer, WitnessAI, and CrowdStrike.
What happened
Reco AI has raised a $55 million Series B extension, bringing its total funding to $140 million. The new capital will be used to expand the company's platform for governing AI agents across enterprise SaaS environments.
The extension follows a $30 million Series B announced in February 2026. AT&T Ventures, Forestay Capital, and Quadrille Capital participated in the latest financing.
Reco AI plans to use the capital to hire new talent, expand its sales and partnerships, and improve customer support. The company has more than 100 customers, with financial services representing about 40% of its business.
Why it matters
Reco AI's shift to governing AI agents places it in a crowded market. Competitors like HiddenLayer, WitnessAI, and CrowdStrike are approaching agent security through runtime monitoring, identity controls, data governance, or application discovery.
Reco AI must prove that its SaaS context gives it a lasting advantage in the agent security market. The company's strategy is to connect its existing application visibility with agents, their owners, the tools they call, and the data they can reach.
The financing supports both a product expansion and a market repositioning. Reco AI must sell security leaders on a broader promise without losing the credibility built around SaaS visibility.
Key facts
- Reco AI has raised a total of $140 million in funding.
- The company has more than 100 customers, with financial services representing about 40% of its business.
- Reco AI's platform integrates with more than 280 applications.
- The company's CEO, Ofer Klein, said that annual recurring revenue had reached the double-digit millions and that he expected it to triple during 2026.
- Reco AI found 21,000 previously unknown agents at one Fortune 100 customer.
- The company's platform aims to identify agents, associate them with owners, map permissions, inspect tool calls, and restrict unnecessary access.
- Reco AI's competitors include HiddenLayer, WitnessAI, and CrowdStrike.
Context
AI agent sprawl is a growing problem for enterprises. Agents can be built by internal developers, activated inside commercial software, or adopted without formal approval.
Agent sprawl is harder to measure than traditional software adoption. One application can host many agent instances, and a single agent can interact with several business systems.
Reco AI's strategy is to connect its existing application visibility with agents, their owners, the tools they call, and the data they can reach. This approach aims to provide security teams with a more comprehensive view of their enterprise's AI agents and their potential risks.
