Reco, the AI security startup, announced Tuesday it has raised $55 million in additional strategic funding led by AT&T Ventures, with participation from new investors Forestay and Quadrille Capital. The round builds on a $30 million Series B announced in February, and brings the company’s total capital raised to $140 million.

The news was confirmed first in a company announcement issued September 29 and reported by TechCrunch, which got the exclusive with co-founder and CEO Ofer Klein. AT&T is both customer and investor here — and Klein says the company’s valuation has “more than doubled” since the February Series B, landing somewhere in the “high hundreds of millions.”

The money, and where it goes#

Reco will use the new capital to expand sales, partnerships, channels, and customer support as large enterprises move from early agent-security pilots to broader deployment. The bet from AT&T’s venture arm is notable: as AT&T Ventures head Vikram Taneja put it, “As both an investor and customer, AT&T recognizes the growing importance of helping organizations understand and manage how AI agents interact with business applications and data.”

The raise comes with numbers that suggest real traction rather than slide-ware. Annual recurring revenue is in the “double-digit millions of dollars,” Klein said, and he expects it to triple this year. The startup has more than 100 customers, with financial services companies accounting for about 40% of the business. Reco was founded in 2020 by Klein and is based in New York.

The pitch: map every agent, then cut the risky ones#

Reco’s core technology, the “Reco Graph,” maps the relationships between agents, identities, applications, permissions, data, and workflows — a context graph that lets security teams see exactly what each agent can reach and revoke access it doesn’t need. The platform integrates with more than 280 apps and AI providers, including OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow, and Workday, with 1,000 detection controls.

Two product mechanics stand out. “Reco Factory” lets new application integrations be added within hours, and the platform uses browser and network signals to find agents operating outside the apps it connects to directly. It also has controls to inspect prompts and tool calls — the layer where a rogue agent actually does its damage.

Illustration of a knowledge graph linking AI agents to enterprise apps, identities and permissions, with one risky agent flagged red
Illustration: AI Frontier Post (AI-generated)

21,000 agents the company didn’t know about#

The pitch is grounded in what Klein describes as a shadow-agent problem that is already out of hand. At one Fortune 100 customer, he said, Reco’s platform found 21,000 agents the company didn’t know about. At a large financial services customer, the startup says it identified an agent set up by an ex-employee that could access Salesforce and share that data with a domain the company couldn’t see.

“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. The company’s own announcement makes the same point more bluntly: “Agents are gaining access to business applications and data faster than many organizations can map or govern those connections.”

Until last year, Reco was mostly selling software to map and secure SaaS and AI platforms. It has since repositioned around the broader agent-security problem — and the pivot looks well timed, given that the company’s existing SaaS-app coverage is exactly what it needs to see the agents those apps are now sprouting.

Illustration of a security team monitoring an AI agent activity dashboard with connection maps and access charts
Illustration: AI Frontier Post (AI-generated)

Why it matters#

ItemDetail
New raise$55 million in additional strategic funding
Led byAT&T Ventures, with Forestay and Quadrille Capital
Total raised$140 million
Prior round$30 million Series B, February 2026
Valuation“High hundreds of millions” — more than doubled since February
RevenueDouble-digit millions of ARR; expects to triple this year
Customers100+, about 40% in financial services

Reco’s raise is a vote of confidence that agent sprawl — the agents multiplying inside enterprises faster than IT can track them — is now a budget line, not a thought experiment. The startup claims 280+ integrations and a graph that links every agent to the accounts, API connections, sessions, and MCP tools it touches. In a market where every vendor promises “discover and govern,” Reco’s differentiator is the SaaS-mapping footprint it already built before agents were the story.

The context favors it. Grand View Research’s 2026 agentic AI security market report values the market at $1.3 billion in 2025 and projects $17.8 billion by 2033 — a 38.9% compound annual growth rate. Gartner predicts the average Fortune 500 company will have more than 150,000 agents in use by 2028, up from fewer than 15 in 2025. And the demand side is already visible: TechCrunch counts at least two dozen companies selling some form of agent security across public Crunchbase and PitchBook profiles.

What to watch#

  1. Shadow agents at scale. The “21,000 unknown agents” anecdote is Reco’s sharpest proof point. Watch whether that number generalizes — and whether regulators start treating undiscovered agents as an audit finding.
  2. From SaaS mapping to agent governance. Reco’s edge is its existing coverage of 280+ apps. The question is whether that translates as agents spawn through browsers, MCP tools, and connections the platform can’t see directly.
  3. The crowding. Two dozen vendors are chasing the same CISOs, from HiddenLayer — whose CEO says 50-plus customers already have agents in production touching critical systems — to startups like Cymphony, which found roughly 85,000 files accessible to AI tools at a single U.S. public company. Consolidation or a features arms race both point the same way: agent security is getting serious, fast.

Sources#