Reco Secures $55M Funding, Total Capital Reaches $140M

Reco has raised $55 million in its latest funding round, bringing its total capital raised to $140 million. The company, co-founded by Ofer Klein, previously secured $30 million in February during its Series B round. Reco's current annual recurring revenue is in the double-digit millions, with expectations to triple this year. The startup has identified 21,000 unknown agents at a Fortune 100 customer, highlighting the growing demand for AI agent security solutions. Approximately 40% of Reco's business comes from financial services companies, and it currently integrates with 280 applications. Ofer Klein noted that market demand for agent security encompasses the entire ecosystem, not just individual agents. This follows a trend where other startups like CrowdStrike and HiddenLayer are also entering the AI security space, with HiddenLayer's CEO Chris Sestito emphasizing the rapid scaling of costs and risks once agents reach production. Reco counts AT&T and Forestay among its investors, with Quadrille Capital also contributing to its funding efforts.