From Shadow AI Risk to Enterprise Security Backbone: How Reco is Redefining AI SaaS Protection
From Shadow AI Risk to Enterprise Security Backbone: How Reco is Redefining AI SaaS Protection
In an era where artificial intelligence (AI) adoption is no longer a futuristic aspiration but a business imperative, one cybersecurity startup is emerging as a cornerstone in securing the modern digital enterprise. Reco — an AI-native SaaS security innovator — recently made headlines with a significant Series B funding round, underscoring both investor confidence and the urgent market need for specialized security solutions tailored to AI-powered environments.
As enterprises increasingly embrace AI across workflows, a new class of security vulnerabilities is emerging — from unauthorized “shadow AI” usage to complex SaaS ecosystems with thousands of interconnected apps. Reco’s mission is to give businesses the visibility, governance, and control they urgently need to safeguard data, identities, and AI interactions at scale.
A Strategic Funding Milestone: $30 Million and Counting
In February 2026, Reco announced a $30 million Series B raise, led by Zeev Ventures alongside a syndicate of existing and new strategic investors including Insight Partners, boldstart ventures, Angular Ventures, Workday Ventures, TIAA Ventures, S Ventures, and Quadrille Capital. This infusion brings the company’s total funding to approximately $85 million, less than a year after its previous round.
The investment reflects rapid investor confidence in Reco’s ability to address a mounting cybersecurity challenge: securing hybrid work environments where employees leverage a growing constellation of SaaS applications — many of them AI-augmented — often outside the oversight of traditional IT teams. That risk vector, referred to in the industry as “shadow AI,” poses data leakage, compliance, and identity exposure threats.
Reco’s latest funding aims to accelerate platform enhancements, expand engineering and go-to-market teams, and scale its global footprint to meet demand from large enterprises in finance, healthcare, technology, manufacturing, and other regulated sectors.
Growth Trajectory That Commands Attention
Reco’s trajectory over the past three years illustrates not just investor enthusiasm but genuine market traction:
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2024: A remarkable 500% year-over-year growth in Annual Recurring Revenue (ARR) as enterprises experimented with and began adopting AI tools at scale.
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2025: Another 400% growth on a significantly larger revenue base, demonstrating both product-market fit and organizational scalability.
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Global enterprise adoption: Reco’s platform now supports a wide range of Fortune 500 companies and industry leaders, signaling trust among some of the most demanding IT environments in the world.
These figures are more than just statistics; they reflect a tectonic shift in how businesses view security in the AI era. Traditional cybersecurity tools excelled at defending static perimeters, but the rise of cloud-native apps and AI agents demands a fundamentally different approach — one that Reco is pioneering.
Why AI SaaS Security Matters Today
The digital enterprise landscape has become extraordinarily complex:
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AI adoption is pervasive: Tools like ChatGPT, Copilot, Salesforce Einstein, and bespoke AI services are now integral to daily operations.
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Shadow AI usage is widespread: Surveys suggest that over 70% of knowledge workers use AI tools without formal IT approval, creating blind spots for security teams.
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SaaS ecosystems are sprawling: A single enterprise can rely on hundreds — or thousands — of SaaS integrations, each introducing new identities, permissions, and data flows.
This evolution exposes a critical gap in legacy security stacks: they were not designed to continuously monitor, contextualize, and protect AI-driven workloads or autonomous agents that behave like independent users across the enterprise. Reco’s platform is built specifically to fill that gap with agent-powered discovery, real-time visibility, and dynamic risk prioritization.
How Reco’s Technology Works
At the core of Reco’s offering is a combination of AI agents, dynamic discovery, and deep visibility into SaaS and AI interactions:
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Continuous discovery: Reco maps every SaaS application, AI agent, and user interaction across an organization’s digital estate — even those previously unseen by security teams.
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AI-driven insights: Its proprietary AI models correlate identities, permissions, data flows, and behavior patterns to identify risk areas such as over-permissioned users or risky app usage.
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Integration velocity: Reco’s “AppFactory” infrastructure supports rapid onboarding of new SaaS integrations — often within days — keeping pace with the dynamic needs of modern IT environments.
This approach enables security and risk teams to prioritize threats effectively, align with compliance mandates, and empower business units to adopt AI safely — all without slowing innovation.
Recognition and Market Validation
Reco’s innovations are not only attracting capital but also industry recognition. In 2025, Reco was named a CRN® 2025 Stellar Startup in the security category for the second consecutive year, highlighting its contribution to solving real-world challenges like shadow IT, identity risk, and SaaS sprawl.
This award underscores Reco’s technical excellence and strategic relevance at a time when enterprises are prioritizing security solutions that can keep up with the pace of digital transformation.
Looking Ahead: What’s Next for Reco?
With fresh capital fuel, an expanding customer base, and growing enterprise demand for AI native security, Reco is poised for accelerated growth. The company plans to extend its platform capabilities, including deeper automation, broader SaaS coverage, and enhancements that enable security teams to enforce policies proactively rather than reactively.
As AI continues to reshape business operations, the demand for solutions that secure these new frontiers will only increase. Reco’s ability to help organizations balance innovation with risk mitigation positions it as a strategic partner — not just a vendor — in the ongoing evolution of enterprise security.
Final Thoughts
In under six years, Reco has moved from a visionary startup to a recognized leader in AI SaaS security, backed by top-tier investors and trusted by global enterprises. Its recent $30 million Series B funding round reinforces a pivotal truth: in today’s AI-first world, security must be as dynamic, intelligent, and adaptable as the technologies it protects.
For CIOs, CISOs, and tech leaders navigating the complexities of modern digital transformation, Reco represents not just a solution — but a security paradigm for the AI era.
