Reco has raised $55 million in new funding, the company announced Tuesday, as investors bet on a security market that is filling up with competitors almost as fast as the AI agents they aim to protect.
The funding round values the company at a figure it did not disclose. Reco sells software that tracks what AI agents do inside corporate networks, including which tools they call and what data they can reach.
The company joins a crowded field. Public profiles on Crunchbase and PitchBook list at least two dozen vendors selling some form of AI agent security, according to a TechCrunch review.
The vendors overlap heavily. Some vet the third-party tools agents connect to. Others restrict the data agents can touch. CrowdStrike and other large security firms build detection and response controls on the devices where agents run. A separate group focuses on finding and shutting down unapproved AI use.
Their pitches sound nearly identical, leaning on terms like knowledge graphs, continuous monitoring, runtime security, and MCP vetting. MCP, or Model Context Protocol, is a standard that lets AI models connect to outside tools and data sources.
The crowded market reflects a real problem for chief information security officers. Companies are deploying AI agents in large numbers, and each agent can act on its own across systems that were never built to track automated users.
That gap has created what industry observers call AI sprawl: agents multiplying faster than security teams can inventory them. Vendors have rushed in to sell discovery and governance tools, but buyers now face a second sprawl, this one of overlapping products.
Reco is not the only startup drawing venture money into the category. Competitors have raised their own rounds over the past year, and established security platforms have added agent controls to existing products rather than cede the market.
The consolidation pressure is already visible. Some vendors have rebranded older products to claim an AI agent security story, a sign that differentiation is thin and buyers are struggling to tell offerings apart.
For Reco, the new capital buys time to prove its approach stands out. The company will need to show customers measurable results, not just another dashboard that promises to watch the watchers.
Security analysts say the winners will likely be vendors that integrate with the tools companies already use, rather than those asking firms to bolt on yet another standalone platform.
Reco did not say how it plans to spend the funds or whether the round included strategic investors.
