Reco raises $55M as AI agent security market becomes increasingly crowded

Reco, an AI security startup that previously focused on mapping and securing SaaS and AI platforms, has raised $55 million and rebranded around a broader solution for AI agent security. The company now uses a context graph to link agents to apps, people, accounts and permissions, giving security teams visibility into what each agent can access and the ability to cut off unnecessary privileges.

CEO and co-founder Ofer Klein told TechCrunch that the shift was driven by enterprises deploying AI agents faster than they can track. At one Fortune 100 customer, Reco’s platform discovered 21,000 agents the company did not know about. At a large financial services client, the startup identified an agent set up by a former employee that could access Salesforce and share data with a domain the company could not 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 said.

Reco is not alone in chasing this opportunity. Public deal records show at least two dozen companies now selling some form of AI agent security. Approaches vary: some vet the tools agents use, others control data access, and firms like CrowdStrike are building detection and response controls on the devices agents run. Still others focus on finding unapproved AI usage. Despite different tactics, most vendors promise to discover and govern agents using knowledge graphs, continuous monitoring, runtime security and MCP vetting.

Reco’s funding round arrives as the market for AI agent security rapidly takes shape, with enterprises struggling to keep pace with the proliferation of autonomous software agents.

Analysis

Why This Matters

Enterprises are deploying AI agents at scale, creating a new class of security blind spots that traditional tools cannot address.
The proliferation of agent security vendors mirrors the earlier SaaS security boom, indicating a fast-growing market but also a risk of confusion for CISOs choosing among similar-sounding products.
Reco’s findings suggest that many organisations have little visibility into their own agent deployments, raising the stakes for data breaches and insider threats.

Background

AI agents are software programs that can autonomously perform tasks such as querying databases, sending emails or interacting with other systems. As enterprises adopt them for customer support, internal workflows and data analysis, the security industry has scrambled to offer governance products. Reco began as a SaaS and AI platform security vendor before pivoting to address the broader ecosystem of agents, tools and permissions. The market now includes dozens of startups and incumbents such as CrowdStrike.

Key Perspectives

CISOs and security teams: They face a growing need to discover, monitor and control AI agents but must navigate a crowded field of vendors promising overlapping capabilities. The risk of agent misuse or data leakage is driving urgency. Vendors in the space: Companies like Reco, CrowdStrike and others see a large opportunity as enterprises treat agent security as a distinct category. Differentiation is a challenge, but first-movers may capture customer loyalty. Critics/Skeptics: The market may be overheated, with many vendors offering similar knowledge-graph and monitoring features. Some argue that existing security tools (e.g., identity governance, data loss prevention) could be extended rather than requiring specialised agent security solutions.

What to Watch

Customer adoption rates for dedicated agent security platforms versus general security tools.
Enterprise survey data on the number of unknown agents in production, which could validate or undercut Reco’s projections.
Potential consolidation as the market matures, with larger security vendors acquiring startups to fill gaps.

Analysis

Why This Matters

Background

Key Perspectives

What to Watch

Sources