Reco Raises $30 Million Series B to Expand AI SaaS Security for Enterprises

Reco announced today that it has raised $30 million in Series B funding, bringing its total capital raised to $85 million. The round was led by Zeev Ventures, with participation from existing investors Insight Partners, boldstart ventures, and Angular Ventures. New corporate investors joining the round include Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital.

The financing comes less than ten months after Reco’s previous raise and reflects accelerating enterprise demand for tools that can discover and secure the growing use of AI-powered SaaS applications across modern organizations.

Growth Driven by Enterprise AI Adoption

Reco’s latest funding follows a period of rapid expansion. After recording a sharp increase in annual recurring revenue in 2024, the company reported additional triple-digit growth in 2025 on a significantly larger base. That momentum has been driven by widespread enterprise adoption of AI features embedded in SaaS platforms, as well as the rise of standalone AI tools and autonomous agents used across departments.

As AI becomes embedded in everyday business software, many of these tools are adopted outside traditional IT procurement processes. This phenomenon—often referred to as shadow AI—has created new visibility and governance challenges for security teams, particularly as sensitive data flows through SaaS-to-SaaS integrations and AI-driven workflows.

SaaS as the New Security Perimeter

Most enterprise AI is now delivered through SaaS platforms rather than bespoke, in-house systems. AI assistants, embedded copilots, and autonomous agents increasingly act as users themselves, creating identities, permissions, integrations, and new attack paths. While cloud infrastructure and endpoint security have matured over the past decade, SaaS environments—especially those infused with AI—remain difficult to monitor with legacy tools.

Reco was built to address this gap. The company provides a platform designed specifically to secure SaaS and AI usage by continuously discovering applications, users, permissions, and data flows across an organization’s SaaS ecosystem. Its system focuses on understanding how AI-powered features and agents operate within and between platforms, rather than treating SaaS applications as static assets.

Enabling Security Teams, Not Slowing Them Down

This shift has changed expectations for security leadership. CISOs are increasingly tasked with enabling AI adoption safely, rather than blocking new tools outright. Doing so requires accurate, real-time insight into which applications are in use, how data moves between them, and where misconfigurations or risky behavior may emerge.

Reco’s approach centers on continuous discovery and analysis powered by its own AI agents and a contextual knowledge graph. By mapping relationships between users, applications, permissions, and integrations, the platform aims to give security teams the context they need to prioritize risks and respond quickly, without relying on manual audits or periodic assessments.

How the New Funding Will Be Used

Reco plans to use the Series B funding to expand across engineering, product development, and go-to-market teams. A significant focus will be on scaling the company’s ability to discover and secure AI applications and agents as enterprises continue to experiment with new tools and integrations.

The company also intends to broaden coverage across SaaS platforms, supporting faster onboarding of new applications as customer environments evolve. As AI capabilities continue to proliferate across business software, maintaining up-to-date visibility remains a core challenge for security teams.

A Market Still Taking Shape

Reco’s raise highlights a broader transition underway in enterprise security. As AI becomes inseparable from SaaS, security strategies are shifting away from perimeter-based controls toward continuous, context-aware oversight of applications and identities. With enterprises still early in this transition, vendors focused on AI SaaS security are positioning themselves at the intersection of two fast-moving trends.

The Series B round signals confidence that demand for this category will continue to grow as organizations seek to balance rapid AI adoption with the need for control, visibility, and risk management across increasingly complex SaaS environments.