Pomegra
Reco, the Israel and US-based SaaS and AI security company, raised $55 million on September 29, 2026 in a strategic round backed by AT&T Ventures to govern enterprise AI agents.
Key Takeaways
- Reco raised $55M, extending its $30M February 2026 Series B; total funding reaches $140M.
- AT&T Ventures backed the round, with Forestay and Quadrille Capital; AT&T is also a Reco customer.
- Valuation reportedly more than doubled since February, to the "high hundreds of millions."
Lead
Reco announced a $55 million strategic round on September 29, 2026, bringing its total funding to $140 million. Some early coverage put the figure at $50 million; the company's announcement and most subsequent reports cite $55 million. The round comes seven months after Reco closed a $30 million Series B led by Zeev Ventures in February, which lifted total funding to $85 million at the time. AT&T Ventures, the telecom group's venture arm, backed the new money, with Forestay and Quadrille Capital also named as investors.
What Does Reco Actually Do?
Reco sells software that finds and controls AI agents operating inside corporate systems. The platform builds what it calls the Reco Graph, a map linking agents to the accounts, APIs, sessions, tools and applications they touch. It then flags excessive access and revokes permissions that agents do not need.
The company says it integrates with more than 280 applications, including OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow and Workday. It uses browser and network signals to identify agents and can inspect prompts and tool calls. The company was founded in 2020 and is led by CEO Ofer Klein, with CTO Tal Shapira and CPO Gal Nakash, and employs roughly 140 people.
Why Did AT&T Invest After Becoming a Customer?
AT&T put money in because it already runs Reco in production and wants the product to keep pace with agent adoption. The telecom began as a customer before its venture arm joined the cap table. AT&T Ventures head Vikram Taneja said Reco's approach to visibility and governance matches the needs the group sees as agent adoption evolves.
A customer-turned-investor is a mixed signal. It confirms real deployment at a large enterprise. It also ties a reference account to the company's financial success, which a buyer evaluating the product should weigh.
How Fast Is the Business Growing, and What Is It Worth?
Reco's annual recurring revenue sits in the "double-digit millions of dollars," according to the CEO, who expects it to roughly triple this year. The company counts more than 100 customers, with financial services accounting for about 40 percent of its business.
Klein declined to give a valuation but described it as in the "high hundreds of millions," more than double the February level. A valuation that doubles in seven months on revenue still in the tens of millions prices in continued hypergrowth. It also reflects investor appetite for any vendor with a credible claim on agent security, a category that barely existed two years ago.
Is the AI Agent Security Market Getting Crowded?
Yes. Reco competes with a growing field of startups and incumbents, including CrowdStrike, HiddenLayer, Zenity, AIR and Cymphony. Large endpoint and identity vendors are adding agent controls to existing suites, which compresses the window for standalone products.
Reco's argument is that agents are a continuation of its original SaaS security problem. Agents inherit the permissions of the applications and identities they connect to, so a platform that already maps SaaS access has a head start. The counterargument is that identity platforms and model providers will bundle comparable governance features, and customers may decline to pay separately for them.
Where the Money Goes
Reco plans to spend the funds on sales, partnerships, channels and customer support. That is a go-to-market budget, not a research one, and it suggests the company believes its product is ahead of its distribution. The company has not said whether it plans a further round or an acquisition.
Outlook
Reco enters the fourth quarter with $140 million raised, a customer base above 100 and a strategic backer that also pays for the product. The next test is whether ARR triples as projected and whether enterprises buy agent governance as a standalone line item. If large vendors fold similar controls into broader platforms, the valuation set by this round will be harder to defend.
