Israeli Cybersecurity Startup Reco Secures $50 Million to Expand AI Agent Security
Israeli cybersecurity firm Reco has expanded its Series B funding round, bringing total capital raised to $80 million following a $50 million investment led by AT&T and Forestay.
The Israeli cybersecurity company Reco has expanded its Series B funding round, originally announced in February of this year, bringing its total funding to $80 million. As part of this expansion, the company raised an additional $50 million, with participation from new investors AT&T and Forestay. AT&T initially established its relationship with Reco as a customer before subsequently becoming a strategic investor.
Current round participants also included Insight Partners, Boldstart Ventures, Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital. Following this financing, Reco's total capital raised since inception stands at $135 million. The company announced that the funds will be used to scale its business operations.
Growth and the Rise of AI Usage
Reco was founded in 2020 by Ofer Klein, CEO; Dr. Tal Shapira, CTO; and Gal Nakash, CPO. According to company metrics, Reco grew by 500% between 2023 and 2024, and registered an additional 400% growth in 2025.
The company attributes this rapid growth to its expanding operations and the surging adoption of AI tools and AI agents within organizations, alongside the proliferation of Shadow AI. According to data provided by Reco, the company serves more than 100 Fortune 100 companies and global enterprises across financial services, healthcare, technology, pharmaceuticals, and manufacturing. Reco employs approximately 140 people, split evenly between Israel and the United States.
Securing AI Agents
Reco operates in the domain known as Agents Security, which focuses on securing AI agents connected to enterprise applications, identities, permissions, and data, allowing them to operate autonomously within organizational workflows.
According to Gartner, the average Fortune 500 company is projected to deploy more than 150,000 AI agents by 2028, compared to fewer than 15 in 2025. This exponential growth in agent volume creates what is known as Agent Sprawl—the rapid, decentralized proliferation of agents connected to various systems across an enterprise. This phenomenon confronts IT and cybersecurity teams with the critical challenge of identifying which agents are active, what systems and data they have permission to access, and what actions they can execute.
AI agents frequently gain access to sensitive data and business systems via OAuth permissions, API connections, browser access, MCP tools, and native AI capabilities embedded within everyday workplace applications. According to the company, combining various permissions and integrations can drastically expand an agent's access to vital enterprise resources, including customer data, source code, financial processes, ticketing systems, documents, and communication channels.
The Reco Platform Architecture
Reco has developed a proprietary platform that maps AI agents, applications, users, and their interconnections, while analyzing permissions and behavioral patterns. At the core of the system lies Reco Graph, a mapping layer designed to give cybersecurity teams complete visibility into active AI agents and tools, the identities and permissions they utilize, the systems and data they can reach, and the processes they can trigger.
According to the company, the platform prioritizes risks based on their potential business impact, enabling teams to remediate excessive permissions, revoke irrelevant access privileges, disable rogue integrations, and enforce security policies. Reco states that its platform integrates with hundreds of AI providers and enterprise applications, including OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow, and Workday.
"AI agents are gaining access to systems and internal data at a pace far exceeding the ability of many organizations to map and manage these connections," said Ofer Klein, co-founder and CEO of Reco. "The participation of AT&T, both as a customer and a strategic investor, reflects the growing enterprise demand for security solutions capable of monitoring AI agents across every environment where they operate. This funding will enable us to expand our business operations, deepen our partnership network, and support larger enterprises as AI agents become an increasingly critical component of their production environments and business processes."
"As both an investor and a customer, AT&T recognizes the importance of solutions that give organizations the ability to understand and govern how AI agents interact with their applications and corporate data," stated Vikram Taneja, head of AT&T Ventures. "Reco addresses this vital need, which becomes increasingly significant as the deployment of AI agents continues to accelerate."
"Reco helps AT&T strengthen our governance over enterprise applications and our AI environment by providing broader visibility into security risks associated with AI agents, their access permissions, and third-party integrations," added Rich Baich, CISO at AT&T. "This capability helps us make better decisions, improve our readiness posture, and support the safe deployment of AI-driven innovation across the enterprise."
