Cybersecurity Firm Rico Raises $50 Million, Reaching $135 Million Total Funding

Rico, a cybersecurity company specializing in AI agent security, has announced an expansion of its Series B funding round, adding $50 million to bring the total round to $80 million and its overall funding to approximately $135 million since its inception. Notably, AT&T, which began as a customer of Rico, has now joined as an investor in this round. Other participants include Forestay, Quadrille Capital, and previous investors from the initial Series B. Rico initially raised $30 million in February as part of its Series B, which had brought its total funding to $85 million at the time. The company, founded in 2020, develops a platform that provides organizations with visibility into how applications, users, and AI agents connect to internal information and systems. Rico has experienced significant growth, employing around 140 people split between Israel and the U.S., up from 100 earlier this year. The company reports substantial growth rates, projecting 500% growth in 2024 and an additional 400% in 2025, attributing this to the increasing demand for securing AI-driven software environments. Rico's product has evolved from securing SaaS applications to managing a broader spectrum of identities, permissions, and AI agents, offering over 260 application integrations and 1,000 identity controls. The platform addresses the growing challenge of AI agents accessing business applications, reading data, and performing actions on behalf of users, mapping these connections and assessing potential business impacts. The $50 million expansion is earmarked for business development, expanding partnerships, and increasing penetration into large enterprises, as AI agent security emerges as a distinct category in cybersecurity budgets. This funding round also highlights the growing interest in the AI agent security market, with other Israeli companies like Zenity, Cymulate, Ash Security, and Tenta Security also securing significant investments.