New York-based cybersecurity startup Reco has closed a $30 million Series B funding round, bringing its total capital raised to $85 million.
The round was led by Zeev Ventures, with participation from all existing investors like Insight Partners, boldstart ventures, and Angular Ventures, and new corporate backers including Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital. The announcement comes less than 10 months after the company’s previous raise, a pace that reflects how quickly demand for artificial intelligence (AI) SaaS security is growing among large enterprises.
What Reco Does
Founded in 2020, Reco builds security infrastructure specifically for AI-driven SaaS environments. The company’s platform uses proprietary AI agents to continuously monitor an organization’s SaaS landscape, which covers platforms like Salesforce, ChatGPT, and Microsoft Copilot, as well as thousands of smaller AI-powered apps and autonomous agents.
Reco’s approach is quite different from legacy security tools as it manifests in the depth of the visibility it offers. Its platform tracks who or what is accessing data, which permissions are active, how information moves between systems, and how AI agents behave as they interact across those systems. Reco says it aims to fill the gap traditional endpoint and cloud security tools can not, as these tools only account for AI agents that operate with their own identities and create new integrations autonomously.
“In the enterprise, AI is being consumed through SaaS, whether its AI applications, agents embedded in existing platforms, or AI-powered integrations connecting business systems,” Ofer Klein, CEO and Cofounder at Reco said. “Organizations recognize that to adopt AI safely and at scale, they need visibility and control across their entire SaaS ecosystem and not only the core SaaS applications. That’s the opportunity Reco was built to address with the largest coverage and depth of AI SaaS apps and AI agents in the industry.”
The Problem Driving the Investment
The funding is majorly rooted in a measurable problem. According to data cited by Reco, 71% of knowledge workers now use AI tools without IT approval, a practice widely referred to as Shadow AI. On top of that, 20% of enterprises have already reported data leaks tied to this kind of unsanctioned AI use.
As AI agents take on more autonomous roles inside company systems, from processing data, making API calls, to managing workflows, they introduce new attack surfaces that security teams are struggling to keep up with. High-profile breaches involving threat groups like ShinyHunters, as well as incidents connected to SaaS platforms like Salesloft and Gainsight, illustrate how real this threat is for enterprise environments.
For many large organizations, the choice is no longer whether to adopt AI but how to do it without opening the door to security failures.
Reco’s growth numbers also help explain why the company went back for funding so quickly. The company reported 500% year-over-year ARR growth in 2024, followed by an additional 400% in 2025 on a considerably larger revenue base. That consecutive growth rate, across sectors like financial services, healthcare, pharma, manufacturing, and technology, placed Reco in front of Fortune 500 companies.
What Comes Next
Reco plans to use the new capital to expand hiring across engineering, product, and go-to-market teams, with a specific focus on discovering and securing AI applications and agents at scale. The company currently employs around 100 people, split evenly between Israel and the United States.
The broader cybersecurity funding environment also provides useful context. According to Pinpoint Search Group, cybersecurity startups raised nearly $14 billion in 2025, representing a 47% jump from 2024 and the highest total since 2021. Reco’s raise is part of a sector-wide surge in investment as enterprises grapple with the security implications of rapid AI adoption.
The central challenge for Reco, by its CEO’s own account, is now keeping pace with inbound demand. Security leaders across industries are actively seeking platforms that can give them real-time oversight of how AI tools are being used inside their organizations without slowing down the adoption of those tools.
Whether Reco’s platform can maintain that kind of growth at a larger scale is the question the next phase of the company will answer. For now, the investors backing this round are clearly betting it can.
“My investment strategy has always been to double down on what’s working,” Oren Zeev from Zeev Ventures attested. “I’ve seen this pattern with successful companies like Navan and Tipalti and I’m seeing it again with Reco. The signals we see show rapidly growing market demand for AI SaaS security and we are experiencing exceptional growth. The opportunity ahead for Reco is massive.”
