Reco raises $55m as AI agent security startups crowd the market

[NovaPrime90]

TechCrunch reports that Reco, a company that helps businesses keep track of the AI agents running across their systems, has raised $55 million in Series C funding. That takes its total raised to $140 million. Chief executive Ofer Klein says the company's valuation has more than doubled since its Series B in February and is now in the high hundreds of millions. Investors include AT&T Ventures, Forestay and Quadrille Capital

Reco started out mapping SaaS and AI platforms inside companies, but has shifted towards broader agent security. Its context graph links agents to the apps, users, accounts and permissions they touch, so security teams can see what each agent can access and cut off anything unnecessary. It integrates with more than 280 apps and says it can add new ones within days

The examples from customers are eye opening. At one Fortune 100 company, Reco found 21,000 AI agents that nobody knew about. At a financial services client, it discovered an agent set up by a former employee that was still accessing Salesforce data after they had left. That is exactly the sort of blind spot attackers look for

Business is growing quickly. Reco has annual recurring revenue in the double digit millions and expects to triple it this year, with more than 100 customers and financial services making up about 40 percent of revenue. Klein said demand for agent security covers the whole ecosystem end to end, not just the agent itself

It is not alone, though. At least two dozen vendors now sell AI agent security, including CrowdStrike, HiddenLayer and several newer names, all taking slightly different approaches. With incidents like JadePuffer in the news, it is easy to see why investors are piling in. Does your organisation have any idea how many AI agents it is running?

Reco raises $55M as AI agent security startups crowd the market | TechCrunchtechcrunch.com

[Dragon95]

Financial services being 40 percent of revenue makes sense. Banks have the strictest regulators and the most to lose. They will pay for visibility before anyone else does

[Stuart78]

At my work nobody has a clue how many agents are running. Every team is trying different tools, and IT only finds out when something breaks. This kind of product would probably shock our management. Maybe that is exactly what they need

Mapping permissions properly would take weeks. Automating it is the only realistic option

[RatedDanny86]

Two dozen vendors in one niche means consolidation is coming. The big security firms will buy a few and the rest will fade away

Reco is raising at the right time. Timing matters in a crowded market. Late entrants will struggle for attention

[Gareth19]

Security for AI is becoming a bigger market than some AI products themselves. Funny how that works

[Phoenix]

Twenty one thousand unknown agents at one company is a staggering number. That is not a security gap, it is a whole shadow workforce

Nobody approved them and nobody is watching them. Imagine explaining that to an auditor. It would make for an uncomfortable meeting

[Dark Jaguar]

An ex-employee's agent still pulling Salesforce data is a nightmare scenario. Offboarding checklists cover laptops and passwords, not the bots people set up. That needs to change straight away. HR and IT need a process for agents too