Reco, an AI security startup, has raised $55 million to address the challenge of AI agent sprawl in enterprises. The funding extends its $30 million Series B round from earlier this year.
TL;DR
- Reco raises $55M to manage AI agent sprawl, bringing total funding to $140M.
- The startup's valuation has more than doubled since February, with annual recurring revenue expected to triple this year.
- Reco's context graph links agents to apps, people, accounts, and permissions, helping security teams remove unnecessary access.
What happened
Reco, an AI security startup, has secured $55 million in additional funding, extending its $30 million Series B round from February. The round saw participation from AT&T's venture arm, Forestay, and Quadrille Capital, bringing the company's total funding to $140 million.
According to co-founder and CEO Ofer Klein, Reco's valuation has more than doubled since February, placing it in the high hundreds of millions. The company's annual recurring revenue is in the double-digit millions and is expected to triple this year.
Reco has over 100 customers, with financial services making up about 40% of its business. The startup has shifted its focus to a context graph that links agents to apps, people, accounts, and permissions, enabling security teams to see what agents can access and remove unnecessary permissions.
Why it matters
Enterprises are deploying AI agents faster than they can track them, leading to a phenomenon known as AI agent sprawl. Reco's platform found 21,000 unknown agents at one Fortune 100 customer, highlighting the scale of the problem.
Reco's context graph allows security teams to manage access and permissions more effectively, reducing the risk of security breaches. The startup integrates with more than 280 apps and uses browser and network signals to detect agents elsewhere.
Reco enters a crowded field of at least two dozen agent security vendors. The $55 million in funding will be used for hiring, sales, partnerships, and customer support, as the company looks to capitalize on the growing demand for AI agent management solutions.
Key facts
- Reco raises $55 million, bringing total funding to $140 million.
- Valuation has more than doubled since February, per CEO Ofer Klein.
- Annual recurring revenue is in the double-digit millions and expected to triple this year.
- Over 100 customers, with financial services making up about 40% of the business.
- Context graph links agents to apps, people, accounts, and permissions.
- Integrates with more than 280 apps and uses browser and network signals to detect agents.
- Found 21,000 unknown agents at one Fortune 100 customer.
- Competes with at least two dozen other agent security vendors.
Context
The rise of AI agents in enterprises has led to a new set of security challenges. As companies deploy more AI agents, they struggle to track and manage them effectively, leading to potential security risks.
Reco's context graph offers a solution to this problem by providing a comprehensive view of all agents and their access permissions. This allows security teams to remove unnecessary access and reduce the risk of breaches.
The AI security market is becoming increasingly competitive, with numerous startups vying for a share. Reco's recent funding round highlights the growing demand for AI agent management solutions and the potential for significant growth in this sector.
