Reco, a startup that helps companies find and govern the AI agents running across their software, has raised a $55 million Series C, TechCrunch reported Tuesday. The round brings the New York company's total funding to $140 million and lands as more than 20 vendors compete to sell security for AI agents.

What Happened

AT&T Ventures led the round, according to SecurityWeek, with Forestay and Quadrille Capital joining as new investors. Reco did not disclose its valuation, but TechCrunch reported it is in the "high hundreds of millions" of dollars, more than double where it stood when the company announced a $30 million Series B in February.

The company told TechCrunch that annual recurring revenue is in the double-digit millions of dollars and is expected to triple this year. It has more than 100 customers, with financial services making up about 40% of the base.

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Reco, founded in 2020, builds what it calls a context graph that ties each agent to the applications, people, accounts and permissions it touches. The product integrates with more than 280 SaaS applications and, for agents outside those integrations, uses browser and network signals to identify them. It also inspects prompts and tool calls. SecurityWeek said the platform connects to services from OpenAI, Anthropic, Microsoft Copilot, Salesforce, ServiceNow and Workday, and maps relationships among agents, APIs, sessions, MCP tools and workflows.

Chief executive Ofer Klein told TechCrunch that buyers want coverage of the whole ecosystem around an agent, not just the agent itself. The company plans to spend the money on hiring across sales, partnerships, channels and customer support.

Why It Matters

The examples Reco shared show why security teams are paying attention. One Fortune 100 customer discovered 21,000 agents it had not known about. A large financial services firm found an agent created by a former employee that still had Salesforce access and the ability to share data in ways the company flagged as suspicious.

Those cases describe an identity problem as much as an AI one. Agents inherit credentials and permissions from the people or service accounts that create them, and when those people leave, the agents can keep running. Tools that inventory agents and tie them back to owners and access rights extend the kind of governance companies already apply to human accounts and SaaS apps.

AT&T Ventures head Vikram Taneja said in SecurityWeek's report that Reco's approach matches what the firm is seeing across enterprises as agent use grows.

A Crowded Field

TechCrunch counted more than 20 companies selling agent security, including CrowdStrike, HiddenLayer, Zenity, AIR and Cymphony. Cymphony, for instance, said it found 85,000 files exposed to AI tools at a major U.S. public company. The mix of large platform vendors and specialist startups means buyers are likely to face overlapping products that each claim to discover and control agents.

Reco's concentration in financial services puts it in front of buyers in a heavily regulated sector, where firms already face strict requirements to show who accessed which data.

What to Watch

Reco's growth target of tripling recurring revenue this year will be the clearest test of whether demand holds as competition intensifies. Consolidation is another question: with this many vendors in a young category, larger security platforms may look to buy capabilities rather than build them.