Reco Raises $30M Series B to Address AI SaaS Security Risks

Reco, a New York-based security vendor focused on AI-driven SaaS environments, has raised $30 million in Series B funding, bringing its total capital raised to $85 million. 

The round was led by Zeev Ventures and included participation from existing investors Insight Partners, boldstart ventures, and Angular Ventures, along with new strategic backers Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital.

Growth tied to enterprise AI adoption

The funding comes less than a year after Reco’s previous raise, reflecting the company’s view that enterprise demand for visibility and control over AI-enabled SaaS usage is accelerating.

Reco reported significant revenue growth over the past two years, citing 500% year-over-year ARR growth in 2024, followed by an additional 400% increase in 2025 on a larger base. 

“My investment strategy has always been to double down on what’s working,” said Oren Zeev from Zeev Ventures. “I’ve seen this pattern with successful companies like Navan and Tipalti, and I’m seeing it again with Reco. The signals we see show rapidly growing market demand for AI SaaS security and we are experiencing exceptional growth. The opportunity ahead for Reco is massive.”

The company attributes that expansion to widespread enterprise adoption of generative AI tools and the rise of “shadow AI,” where employees use AI applications without formal IT approval.

According to data cited by Reco, 71% of knowledge workers now use AI tools outside sanctioned IT environments, and 20% of enterprises have already experienced data exposure linked to unsanctioned AI usage. 

These trends are reshaping how security teams assess SaaS risk, particularly as AI agents introduce new identities, permissions, and integration paths.

“AI has already transformed the modern enterprise and it’s becoming 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 for the AI SaaS environment, and we’re excited to partner with them on this journey of rapid growth.”

SaaS security gaps emerge around AI agents

While cloud infrastructure and endpoint security have matured, Reco argues that AI SaaS environments remain largely invisible to traditional tools. 

AI-powered SaaS applications and autonomous agents increasingly operate as users, creating new attack surfaces that are already being targeted in high-profile breaches involving platforms such as Salesloft and Gainsight.

“In the enterprise, AI is being consumed through SaaS, whether its AI applications, agents embedded in existing platforms, or AI-powered integrations connecting business systems,” Ofer Klein, CEO and cofounder at Reco, said in a statement. 

“This shift is driving the rapid growth we’re seeing. Organizations recognize that to adopt AI safely and at scale, they need visibility and control across their entire SaaS ecosystem and not only the core SaaS applications. That’s the opportunity Reco was built to address with the largest coverage and depth of AI SaaS apps and AI agents in the industry,” Klein continued.

Reco’s platform is designed to continuously discover and monitor SaaS applications, AI agents, permissions, and data flows across environments such as Salesforce, ChatGPT, and Microsoft Copilot. The company uses its own AI agents to map SaaS-to-SaaS interactions and identify risky behavior in real time.

Funding to fuel expansion and hiring

The company said the Series B capital will support product development and hiring across engineering, product, and go-to-market teams. 

Reco currently works with multiple Fortune 500 and global enterprises across regulated industries, including financial services, healthcare, technology, and manufacturing.

“Since partnering with Reco, we’ve automated our most time-consuming security processes, freeing up our team to focus on strategic initiatives rather than manual work,” said Jerich Beason, CISO at Waste Management. 

“The visibility and insights we’ve gained into our AI and SaaS usage has transformed how we operate. This Series B funding signals strong momentum, and we’re excited to continue growing alongside Reco as they expand their capabilities,” Beason continued.

Reco’s channel ecosystem is comprised largely of systems integrators, VARs, and service providers focused on those verticals across the enterprise market.