Reco raises $25m to expand AI-native SaaS security platform (2025)

Reco, a provider of dynamic software-as-a-service (SaaS) security, has secured $25m in additional funding to enhance and scale its AI-native SaaS security platform.

The investment round saw participation from Insight Partners, Zeev Ventures, boldstart ventures, Angular Ventures and new investor Redseed.

It raises Reco’s total funding to $55m.

Reco plans to use the funds to accelerate its AI-native SaaS security platform’s growth, strengthen channel partnerships and capitalise on its market momentum.

The new funding follows Reco’s improved performance, marked by a fivefold increase in annual recurring revenue (ARR) and a threefold growth in customer base within the past year.

Reco co-founder and CEO Ofer Klein said: “The adoption of AI apps and agents has made SaaS security more complex and dynamic than ever. Combine this with the proliferation of SaaS apps including shadow apps, and we are seeing a growing gap between the reality of the ecosystem and what legacy SSPM [SaaS security posture management] tools can provide.

“Businesses need security solutions to be proactive vs. just reactive – simplifying security without slowing down the business.

“The strong interest in this oversubscribed round reflects the confidence of our customers, strategic partners and new investors who share our vision. We are enabling enterprises to contain SaaS sprawl, and this demand-driven growth is proof of how Dynamic SaaS Security is the future.”

Reco’s approach to SaaS security involves a comprehensive application discovery engine that can identify and classify more than 50,000 applications, offering organisations a transparent view of their SaaS ecosystems.

With the latest investment, Reco aims to expand its AI-driven SaaS App Factory and introduce Reco AI Agents for alerts and identities.

Reco’s SaaS App Factory secures more than 175 applications and can integrate new apps in three to five days.

The Reco AI Agents are designed to streamline security operations and provide actionable insights, prioritising alerts and identifying threats while reducing workloads and ensuring data privacy.

Insight Partners managing director Praveen Akkiraju said: “Reco has identified a critical security gap that legacy vendors typically cannot address.

“Reco is transforming SaaS security – delivering seamless execution that scales with enterprise needs and is fuelled by deep customer trust. Their innovative approach to Dynamic SaaS Security and exceptional team position them to lead this rapidly expanding market. We are excited to partner with the Reco team as they accelerate their growth and go big on the market.”

Recently, Reco named Bob Horn as its new chief revenue officer.

Horn, who has more than two decades of sales leadership experience in cybersecurity start-ups, will be responsible for leading the company’s global sales strategy.