Reco raises $55M as AI agent security startups crowd the market
techcrunch ·
Reco has raised $55 million in funding to expand its AI agent security platform, joining a crowded market of startups addressing the risks associated with enterprise AI sprawl. The company repositioned its product to use context graphs that map connections between agents, applications, and permissions, allowing security teams to monitor and restrict access effectively. This shift responds to growing concerns among CISOs about uncontrolled agent deployment, with Reco reporting instances where customers discovered thousands of unknown agents or unauthorized data access. The new investment follows a $30 million Series B earlier this year, bringing Reco's total capital raised to $140 million. Investors including AT&T Ventures, Forestay, and Quadrille Capital participated in the round, valuing the startup in the high hundreds of millions. Reco currently serves over 100 customers, with financial services accounting for 40% of its business, and claims annual recurring revenue in the double-digit millions. The startup plans to utilize the funds for hiring, sales expansion, and partnerships while leveraging its existing integrations with more than 280 apps.
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