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

There’s no doubt a ton of investors are interested in companies that can make a mint out of helping companies find and secure all these agents, and Reco has capitalized on that demand: The startup on Tuesday said it raised $55 million, building on a $30 million Series B in February. AT&T, a customer, invested in the extension via its venture arm, as did Forestay and Quadrille Capital.

Klein said the company’s valuation has “more than doubled” since the Series B was first announced in February, and vaguely estimated it in the “high hundreds of millions” though he wouldn’t share specifics. Annual recurring revenue right now is in the “double-digit millions of dollars,” he said, and he expects it to triple this year. The startup has more than 100 customers, and financial services companies account for about 40% of the business.

Reco’s bet, it appears, is that its existing coverage of SaaS apps, and the AI agents they are increasingly offering, will help it stand out from the crowd. The company currently integrates with more than 280 apps, and Klein says new integrations can be added within days. Klein said the platform uses browser and network signals to find agents outside apps it connects to directly within companies, and it has controls to inspect prompts and tool calls.

The startup will use the new funding for hiring, sales, partnerships, and customer support. The new funding brings Reco’s total capital raised to $140 million.