Reco secures $55m as AI agent security market expands

AI agent security startups are gaining traction as enterprises deploy AI agents at scale, prompting CISOs to seek solutions for managing the associated risks. Reco, an AI security startup, has raised $55 million, bringing its total capital raised to $140 million. The funding follows a $30 million Series B in February and includes investments from AT&T, Forestay, and Quadrille Capital. Reco’s CEO, Ofer Klein, noted that the company’s valuation has more than doubled since the Series B announcement, with annual recurring revenue in the double-digit millions. The startup now serves over 100 customers, with financial services accounting for 40% of its business. Klein emphasized the need for end-to-end security for AI agents, citing a Fortune 100 client that discovered 21,000 unknown agents. HiddenLayer’s CEO, Chris Sestito, also highlighted the rapid scaling of AI agent risks, with over 50 customers using agents in production. Cymphony reported finding 85,000 files accessible to AI tools at a U.S. public company. Reco plans to use the funds for hiring, sales, and partnerships, leveraging its integration with over 280 apps to differentiate itself in the crowded market.