The round, announced Tuesday, is an extension of the company's $30 million Series B from February 2026 and was backed by AT&T's venture arm, Forestay and Quadrille Capital, with AT&T investing as a customer and strategic investor.
The new financing brings Reco's total funding to $140 million, and co-founder and CEO Ofer Klein told TechCrunch the company's valuation has "more than doubled" since the Series B, estimating it only as the "high hundreds of millions."
Reco spent its early years selling software that maps and secures SaaS and AI platforms for enterprise security teams.
Over the past year it has repositioned around a broader product built on a context graph that connects agents to the apps, people, accounts and permissions they touch, showing teams exactly what each agent can reach and cutting access it does not need.
The platform integrates with more than 280 apps — including OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow and Workday — can add new integrations within days, uses browser and network signals to find agents beyond direct integrations, and includes controls to inspect prompts and tool calls.
Tens of Thousands of Agents Hiding in Plain Sight
Klein says a pattern has emerged inside large enterprises over the past year: companies are building and deploying AI agents faster than they can keep track of.
At one of the startup's Fortune 100 customers, he said, Reco's platform found 21,000 agents the company did not know about.
At a large financial services customer, the startup claims it found an agent set up by a former employee that could access Salesforce and share data with a domain the company could not see.
For security teams, the uncomfortable question is not just what the agents are doing, but how many of them exist at all.
"The market demand right now for agent security is not only about the agent itself; it's about the entire ecosystem end-to-end," Klein told TechCrunch.
A Crowded Market Chasing the Agent Boom
Reco enters an increasingly crowded field.
A quick scan of public Crunchbase and PitchBook profiles turns up at least two dozen companies selling some form of AI agent security, from vetting the tools agents use to controlling what data they can reach.
The product pitches sound increasingly similar — knowledge graphs, continuous monitoring, runtime security, MCP vetting and governance dashboards.
The rush reflects the pace of the problem: Gartner predicts the average global Fortune 500 company will use more than 150,000 agents by 2028, up from fewer than 15 in 2025, while IDC forecasts the number of actively deployed AI agents will exceed 1 billion worldwide by 2029.
MarketandMarkets values the agentic AI security market at around $1.65 billion in 2026 and expects it to reach about $13.52 billion by 2032, a 42 percent compound annual growth rate.
What the New Funding Will Power
Reco says the $55 million will go toward hiring, sales, partnerships and customer support as more large enterprises move agents into production.
The startup reports annual recurring revenue in the double-digit millions of dollars and expects it to triple this year.
It has more than 100 customers, with financial services companies accounting for about 40 percent of its business.
Earlier this month, Reco also announced a partnership with ServiceNow to extend its coverage to Otto, ServiceNow's own AI agent product, as the startup looks to stand out in a market where, as one rival CEO put it, agent risk scales from theoretical to full "really quickly" once agents reach production.
By Hamza Faisal
