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

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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