Reco, a cybersecurity company focused on securing AI-driven SaaS environments, announced Monday it has raised $30 million in a Series B funding round led by Zeev Ventures, with participation from existing backers Insight Partners and boldstart ventures. New investors include Workday Ventures, TIAA Ventures, S Ventures and Quadrille Capital.
The new funding comes less than a year after Reco’s previous raise and follows another year of rapid expansion, as demand for AI SaaS security surges across the enterprise sector. The company reported 500% year-over-year growth in 2024, followed by an additional 400% in 2025 on a much larger base.
That momentum is being fueled by the rapid spread of "shadow AI," where 71% of knowledge workers now use AI tools without IT oversight, and 20% of enterprises have reported data leaks stemming from such unsanctioned use. As artificial intelligence becomes a core layer of enterprise operations, delivered primarily through SaaS, security risks have intensified.
“My investment strategy has always been to double down on what's working,” said 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 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.”
Reco’s platform is designed to give enterprises the visibility and control traditional cloud and endpoint tools lack. Its proprietary 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 Protocols (MCP), helping organizations detect risky behavior and close critical gaps in real time.
With most AI services now delivered via SaaS, and AI agents operating as autonomous users creating new identities and integrations, attackers are increasingly exploiting this emerging architecture. High-profile incidents involving threat groups like ShinyHunters and breaches tied to platforms such as Salesloft and Gainsight underscore the urgency.
“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.”
Security leaders are now expected to enable AI adoption while maintaining control — a shift from the gatekeeping role of the past. Doing so requires automated discovery, clear audit trails and scalable guardrails.
“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, chief information security officer 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.”
Reco’s client base includes several Fortune 500 companies and global enterprises across sectors such as finance, healthcare, pharmaceuticals, manufacturing and tech. The company’s AppFactory claims to deliver new SaaS integrations within two to three days and supports more than 215 platforms — the widest coverage in the market, according to Reco.
“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,” said Reco cofounder and CEO Ofer Klein. “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.”
The company plans to use the new capital to expand engineering, product and go-to-market teams as it scales its platform to secure AI SaaS ecosystems at global scale.
“The Reco team is executing on a massive market opportunity at a time when AI SaaS security has become critical for organizations given the proliferation of AI application and agent adoption,” said Thompson Barro of TIAA Ventures. “Their platform addresses a fundamental challenge that enterprises face today: gaining comprehensive visibility and control over increasingly complex cloud environments.
“This Series B positions Reco for its next phase of growth, and we look forward to partnering with the team as they continue to set the standard for agentic AI and dynamic SaaS security.”