Reco Secures $30M to Redefine AI Cloud Security
Cybersecurity startup Reco raises $30 million in Series B funding to expand its AI-driven SaaS security platform as enterprises embrace AI tools.
Cybersecurity startup Reco has raised $30 million in a Series B funding round to expand its AI-driven security platform for SaaS and cloud environments. The funding arrives at a pivotal moment when enterprises rapidly adopt generative AI tools and cloud-based applications, creating new layers of risk across corporate systems.
Reco positions itself at the intersection of AI adoption and cybersecurity enforcement. As organizations integrate AI copilots, automation tools, and third-party SaaS applications into daily workflows, security teams face growing blind spots. Reco aims to eliminate those blind spots with continuous monitoring, identity intelligence, and real-time threat detection.
AI Adoption Creates New Security Risks
Over the past two years, enterprises have accelerated their adoption of AI-driven productivity tools. Employees now use generative AI for drafting content, analyzing data, automating workflows, and coding. While these tools increase efficiency, they also introduce new vulnerabilities.
Shadow AI usage has become one of the biggest concerns for security leaders. Employees often connect AI tools to corporate systems without formal approval. These connections can expose sensitive data, grant excessive permissions, or create misconfigurations in cloud environments.
Reco addresses this issue by mapping SaaS and AI integrations across an organization’s ecosystem. The platform identifies how applications interact, which users hold privileged access, and where misconfigurations create risk exposure. Instead of reacting to breaches after damage occurs, security teams can detect and resolve vulnerabilities proactively.
A Platform Built for SaaS Sprawl
Modern enterprises rely on dozens or even hundreds of SaaS applications. Collaboration platforms, CRM systems, HR tools, marketing automation software, and AI assistants all require authentication and data exchange. This complex web creates what security experts call “SaaS sprawl.”
Reco’s platform centralizes visibility across these systems. It analyzes identity behavior, monitors API connections, and evaluates user permissions in real time. The system highlights abnormal behavior patterns, such as unusual data downloads or unauthorized privilege escalation.
By delivering contextual intelligence rather than raw alerts, Reco reduces noise for security teams. Analysts can focus on high-risk events instead of sorting through thousands of low-priority notifications.
From “Blocked” to Essential
Many organizations initially blocked generative AI tools due to data privacy concerns. However, competitive pressure forced companies to reconsider. Employees and executives recognized that AI tools could dramatically improve productivity and decision-making.
This shift from restriction to controlled adoption has created new demand for AI-aware security solutions. Companies no longer ask whether to use AI—they ask how to secure it effectively.
Reco capitalizes on this change in mindset. Instead of discouraging AI usage, the company enables safe deployment. Its platform allows security teams to monitor AI integrations, enforce governance policies, and prevent data leakage without stifling innovation.
This balanced approach resonates with enterprises that want to remain competitive while protecting intellectual property and customer data.
Funding to Accelerate Growth
The $30 million Series B round will support product development, global expansion, and team growth. Reco plans to enhance its analytics engine, integrate with more SaaS platforms, and expand its presence in North America and Europe.
The company will also invest in customer success and enterprise sales. Large organizations require tailored onboarding, compliance alignment, and continuous support. By strengthening these functions, Reco aims to deepen long-term relationships with enterprise clients.
Investors see strong potential in the SaaS security market. As organizations migrate more operations to cloud-based platforms, identity-centric security models have gained prominence. Reco’s focus on identity intelligence aligns with this broader shift.
Identity as the New Security Perimeter
Traditional cybersecurity models relied heavily on network boundaries. Firewalls and perimeter defenses once protected centralized systems. However, cloud adoption and remote work have dissolved these boundaries.
Today, identity functions as the new security perimeter. User accounts, authentication tokens, and API credentials determine access across distributed systems. When attackers compromise identities, they can bypass traditional defenses entirely.
Reco builds its platform around identity intelligence. The system analyzes how users interact with SaaS tools, evaluates privilege assignments, and detects suspicious patterns. For example, if an employee suddenly gains elevated access rights or connects an unfamiliar AI application, the platform flags the activity.
By focusing on identity behavior rather than static rules, Reco adapts to dynamic enterprise environments.
Competing in a Crowded Market
The SaaS security sector has attracted significant investment over the past few years. Several startups offer SaaS posture management and identity governance tools. However, Reco differentiates itself through its emphasis on AI-era risks.
Many traditional SaaS security tools lack visibility into generative AI integrations and machine-to-machine interactions. Reco integrates AI risk detection into its core architecture. The platform identifies risky prompts, excessive data exposure, and misconfigured AI plugins.
This AI-first approach positions Reco as a strategic partner for companies that actively deploy AI technologies. Rather than retrofitting older tools to accommodate AI, Reco builds solutions with AI usage in mind.
Addressing Compliance and Governance
Regulators across the globe have increased scrutiny on data protection and AI governance. Enterprises must comply with data privacy regulations, industry standards, and emerging AI oversight frameworks.
Reco supports compliance efforts by generating audit trails and risk assessments. Security teams can document access controls, monitor data flows, and demonstrate proactive governance practices. This capability reduces regulatory exposure and strengthens board-level confidence in AI adoption strategies.
Enterprises increasingly require solutions that combine security with governance. Reco’s platform provides both operational visibility and compliance insights, which enhances its appeal to large organizations.
The Road Ahead
Reco’s latest funding round positions the company for its next growth phase. The startup must execute effectively to maintain competitive momentum. As AI adoption accelerates, new threat vectors will emerge. Reco must continuously evolve its detection models and integration capabilities.
The company also faces the challenge of educating enterprises about AI-specific risks. Many organizations still underestimate the security implications of AI integration. Reco’s thought leadership and customer engagement efforts will play a crucial role in shaping market awareness.
If Reco continues to innovate and scale successfully, it could become a central player in the AI-era cybersecurity landscape. Enterprises no longer treat AI security as optional. They view it as foundational to digital transformation.
The $30 million Series B round signals strong investor confidence in Reco’s vision. As organizations shift from blocking AI tools to embracing them responsibly, demand for intelligent security platforms will continue to grow.
Reco stands at the forefront of this transition. By combining identity intelligence, SaaS visibility, and AI risk detection, the company aims to secure the modern enterprise without slowing innovation. In a world where AI adoption moves faster every quarter, Reco’s mission to enable safe and scalable AI usage could define the next chapter of cybersecurity.
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