Israeli Cybersecurity Firm Reco Raises $50 Million, Led by AT&T

Israeli cybersecurity startup Reco has announced an expansion of its Series B funding round, bringing in an additional $50 million and increasing the total round to $80 million. The new investment was led by telecommunications giant AT&T, which also became a strategic investor after initially being a customer. Other participants in this round included Insight Partners, Boldstart Ventures, Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital.

Reco, founded in 2020 by Ofer Klein, Dr. Tal Shapira, and Gal Nakash, specializes in securing AI agents. The company reported significant growth, with a 500% increase in revenue between 2023 and 2024, and another 400% in 2025. This growth is attributed to the increasing adoption of AI tools and agents within organizations, alongside the rise of 'Shadow AI', unauthorized AI usage. Reco's platform, Reco Graph, maps AI agents, applications, users, and their connections, analyzing permissions and activity patterns to help IT and security teams manage risks associated with AI agent sprawl.

The company states its platform serves over 100 Fortune 100 companies and global organizations across various sectors, including financial services, healthcare, technology, pharma, and industry. Reco currently employs approximately 140 people, with half based in Israel and the other half in the United States. The newly raised capital will be used to expand business operations and partnerships.

Ofer Klein, Reco's CEO, highlighted the growing need for security solutions that can track AI agents as they gain access to internal systems and data at a rapid pace. Vikram Tanja of AT&T Ventures emphasized Reco's role in enabling organizations to understand and manage AI agent interactions with corporate data. Rich Baich, CISO at AT&T, added that Reco enhances their control over corporate applications and their AI environment by providing better visibility into security risks related to AI agents, their access permissions, and third-party integrations.