New York-based cybersecurity startup Reco has raised $30 million in Series B funding as companies rapidly expand their use of AI.
Ofer Klein, Gal Nakash, and Tal Shapira founded Reco in 2020 to bridge the gap between a company’s existing cybersecurity protections and other technology tools, often AI, used by employees.
“AI adoption is accelerating so rapidly that companies that blocked access to AI a year ago can no longer do so,” Klein told Business Insider. “And I’m not talking about small mom-and-pop stores. I’m talking about the biggest banks, insurance, health care, pharmaceutical companies and hospitals.”
Zeev Ventures led the latest round, with participation from all existing investors including Insight Partners and Boldstart Ventures. New corporate investors in this round include Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital.
“My investment strategy has always been to double down on what’s working,” Oren Zeev, the well-known seed investor behind Zeev Ventures, said in a statement. “We’ve seen this pattern with successful companies like Navan and Tipalti, and we’re seeing it again at Reco. The signs we’re seeing are that the market demand for AI SaaS security is rapidly increasing, and we’re experiencing exceptional growth.”
While software-as-a-service (SaaS) stocks have tumbled recently due to concerns about AI disruption, Zeev sees a “huge” opportunity in AI for security.
After growing 500% year over year in 2024, Reco said it grew another 400% in 2025 due to a sharp increase in business AI adoption.
Cybersecurity startups also raised nearly $14 billion in 2025, according to Pinpoint Search Group. This is a 47% increase from 2024 and the largest fundraising since 2021.
Klein said that as AI moved from being a block to a necessity, Reco began drawing in much larger companies than expected and repeatedly broke internal plans.
“We planned, we overachieved, we renewed our plan, and we overachieved again,” Klein said. “We said, ‘Okay, enough is enough, let’s raise more money and double down on AI SaaS.'”
Klein said Reco’s biggest challenge now is keeping up with demand.
“This business is driving significant traction in enabling AI,” he said. “Our biggest challenge now is how to grow fast enough to meet the needs of this market.”
Klein’s co-founders also draw on their experience working with governments. Nakash previously led research at the Israeli Prime Minister’s Office, while Shapira holds a PhD in machine learning. He also worked in the Israeli Prime Minister’s Office.
Reco faces competition from Torq, which is backed by Insight Partners and currently valued at $1.2 billion, according to PitchBook. It also competes with Blackstone-backed Cyera, recently valued at $9 billion.
