Reco raises $30M in Series B to address growing AI SaaS security risks

Reco, a cybersecurity company focused on securing AI-driven SaaS environments, announced Monday that it has raised $30 million in a Series B funding round led by Zeev Ventures with participation from existing backers Insight Partners and boldstartventures. New investors include Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital.

This new funding comes less than a year after Reco’s previous funding, and comes after another year of rapid expansion amid soaring demand for AI SaaS security across the enterprise sector. The company reported 500% year-on-year growth in 2024, followed by another 400% growth in 2025 on an even larger basis.

That momentum is fueled by the rapid adoption of “shadow AI,” with 71% of knowledge workers using AI tools without IT oversight and 20% of companies reporting data breaches resulting from such unauthorized use. As artificial intelligence becomes a core layer of enterprise operations and is primarily delivered through SaaS, security risks are increasing.

“My investment strategy has always been to double down on what’s working,” says Oren Zeev of Zeev Ventures. “I’ve seen this pattern with successful companies like Navan and Tipalti, and I’m seeing it again with Reco. The signs we’re seeing are that market demand for AI SaaS security is rapidly increasing, and we’re experiencing exceptional growth. The opportunities ahead for Reco are huge.”

Reco’s platform is designed to give enterprises the visibility and control missing from traditional cloud and endpoint tools. Unique AI agents continuously monitor SaaS environments, from platforms like Salesforce, ChatGPT, and Microsoft Copilot to tens of thousands of niche AI-powered apps and autonomous agents. These agents track users, permissions, data flows, and Model Context Protocol (MCP) to help organizations detect risky behavior and close critical gaps in real-time.

As most AI services are now delivered via SaaS, with AI agents acting as autonomous users and creating new identities and integrations, attackers are increasingly exploiting this new architecture. High-profile incidents involving threat groups like ShinyHunters and breaches involving platforms like Salesloft and Gainsight highlight the urgency.

“AI is already transforming the modern enterprise, making it increasingly urgent for organizations to ensure they have the right security guardrails in place,” said Jeff Wantman, vice president at Workday Ventures. “Reco is establishing itself as a security leader in AI SaaS environments, and we are excited to partner with them on this rapid growth journey.”

Security leaders are now expected to enable AI adoption while maintaining control, a shift from their traditional role as gatekeepers. Doing this requires automatic discovery, clear audit trails, and scalable guardrails.

“Since partnering with Reco, we have automated our most time-consuming security processes, freeing up our team to focus on strategic initiatives instead of manual tasks,” said Jerich Beason, Chief Information Security Officer at Waste Management. “The visibility and insight we have gained into the use of AI and SaaS has changed the way we operate. This Series B funding shows strong momentum and we are excited to continue to grow with Reco as they expand their capabilities.”

Reco’s customer base includes several Fortune 500 companies and global corporations across sectors such as finance, healthcare, pharmaceuticals, manufacturing, and technology. The company’s AppFactory claims to deliver new SaaS integrations within 2-3 days and supports over 215 platforms. This, according to Reco, has the widest coverage on the market.

“Enterprises are leveraging AI through SaaS, including AI applications, agents built into existing platforms, and AI-powered integrations that connect business systems,” said Reco co-founder and CEO Ofer Klein. “This shift is driving the rapid growth we are seeing. Organizations are recognizing that deploying AI securely and at scale requires visibility and control across the entire SaaS ecosystem, not just core SaaS applications. Reco was built to address that opportunity with the industry’s largest breadth and depth of coverage of AI SaaS apps and AI agents.”

The company plans to use the new funding to expand its engineering, product and go-to-market teams as it scales its platform to secure the AI ​​SaaS ecosystem globally.

“The Reco team is addressing a huge market opportunity at a time when AI SaaS security is becoming critical to organizations due to the proliferation of AI applications and agent adoption,” said Thompson Barro of TIAA Ventures. “Their platform addresses a fundamental challenge facing enterprises today: gaining comprehensive visibility and control over increasingly complex cloud environments.

“This Series B positions Reco for its next phase of growth. We look forward to partnering with the team that continues to set the standard for agenttic AI and dynamic SaaS security.”