Reco raises USD $55 million as AI agent security grows

Reco has raised an additional USD $55 million, with participation from AT&T Ventures, bringing the security software company's total funding to USD $140 million.

The round also included new backers Forestay and Quadrille Capital. Reco plans to use the funds to expand sales, partnerships, channels and customer support as large companies increase their use of AI agents across business software and workflows.

The fundraising reflects rising investor interest in tools that monitor and govern AI agents as companies deploy them more widely inside corporate systems. Reco focuses on what it calls agentic security, which aims to track how software agents connect to applications, data and user identities.

Businesses are beginning to face a new governance challenge as AI agents gain access to internal systems through application programming interfaces, browser sessions, service accounts and embedded software features. This creates a broader web of permissions that security teams must understand and control, especially where agents can move among customer records, source code, finance systems, tickets and internal documents.

Reco says demand has grown among Fortune 500 companies as agents become embedded across applications, collaboration tools, browsers, copilots and automated workflows. The company cited Gartner research forecasting that the average global Fortune 500 enterprise will have more than 150,000 agents in use by 2028, up from fewer than 15 in 2025.

That projected increase helps explain why investors and corporate technology teams are paying closer attention to AI oversight tools. Reco says companies need visibility into which agents are active, what identities and permissions they use, what data and systems they can access, which workflows they can initiate and where access should be reduced or removed.

Customer and Investor

AT&T's role in the round is notable because the telecoms group is both a user of Reco's software and a strategic investor through AT&T Ventures. That gives it a direct interest in the market for agent governance as enterprises decide how to secure growing numbers of AI-based tools.

Rich Baich, Chief Information Security Officer at AT&T, described how the software is being used inside the company.

"Reco helps AT&T strengthen governance across our enterprise apps and AI ecosystem by providing greater visibility into agent security risk, access management and third-party integrations," said Rich Baich, Chief Information Security Officer at AT&T.

"This insight enables better decision-making, improves audit readiness and supports our commitment to securing innovation across the enterprise."

Reco Chief Executive Officer and Co-Founder Ofer Klein said companies are struggling to keep pace with how quickly agents are being connected to business systems.

"Agents are gaining access to business applications and data faster than many organizations can map or govern those connections," said Ofer Klein, Chief Executive Officer and Co-Founder of Reco. "AT&T's participation as both a customer and strategic investor reflects the need for security that follows agents across enterprise ecosystems. This funding will help Reco expand sales, partnerships and customer support as more large enterprises move agents into production."

AT&T Ventures also described the investment as a response to changing enterprise needs rather than a narrow bet on one supplier. In its view, organisations need better tools to understand how AI agents interact with core software and data.

"As both an investor and customer, AT&T recognizes the growing importance of helping organizations understand and manage how AI agents interact with business applications and data," said Vikram Taneja, Head of AT&T Ventures. "Reco's approach to visibility and governance aligns with the needs we are seeing across enterprises as agent adoption continues to evolve."

Market Shift

Reco cited Grand View Research figures valuing the global agentic AI security market at USD $1.3 billion in 2025, with projections of USD $17.8 billion by 2033. If that growth materialises, the category will become one of the faster-moving segments of enterprise security software.

Reco says its software integrates with hundreds of AI providers and enterprise applications, including OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow and Workday. According to the company, those links allow customers to govern agents where they already operate rather than build separate oversight processes for each tool.

At the centre of the product is what Reco calls the Reco Graph, a system designed to map relationships among agents, identities, applications, permissions, data and workflows. Reco says this structure helps security teams discover AI-enabled tools, rank risks by business impact and remove unnecessary access without interrupting legitimate work.

The pitch reflects a broader shift in enterprise security from simply blocking unauthorised software to understanding how approved tools interact once connected. In the case of AI agents, the issue is not only whether a tool is allowed into an organisation, but also what chain of access it creates after approval.

For investors, that makes companies such as Reco a play on a likely second phase of AI adoption inside large organisations: governance after deployment. For customers such as AT&T, the attraction is greater visibility into a fast-growing layer of software access that can cut across many business systems.

Reco says the latest funding will help it meet that demand as large enterprises move from early agent security projects to broader deployment.