Reco, an AI-powered cybersecurity startup, has raised an additional $25 million in a Series A extension led by Insight Partners, with support from Zeev Ventures, Boldstart Ventures, Angular Ventures, and Redseed. This brings the company’s total funding to $55 million. The new investment comes as interest in AI security tools surges, especially following Google’s recent $32 billion acquisition of cybersecurity firm Wix.(Source: Business Insider Africa)
Founded in 2020 by Ofer Klein, Gal Nakash, and Tal Shapira, Reco is tackling what it calls the “SaaS security gap”—the growing disconnect between traditional cybersecurity systems and the AI-driven tools that employees increasingly adopt without formal approval. Klein, now based in Orlando, teamed up with Nakash and Shapira, both of whom bring experience from Israel’s Office of the Prime Minister. Shapira also holds a PhD in machine learning.
As more companies adopt generative AI in their operations, Reco provides a way to manage the risks. Its AI agents automatically detect which cloud applications are being used, even those not disclosed to IT teams. The platform then analyses their usage and flags security risks before they escalate. Reco’s AI works using its own internal data rather than customer data, making it both faster and more secure.
Klein said the shift in corporate attitudes toward AI has been dramatic. Many firms that once restricted AI tools are now embracing them, particularly in sectors like banking, healthcare, and insurance. He believes visibility and control are essential to enable innovation without compromising security.
Reco joins a wave of startups focused on AI-based cybersecurity solutions. Others in this space include Torq, which raised $70 million this year, Astrix Security with a $45 million round, and stealth-mode firm 7AI, which secured $36 million. With AI adoption rising sharply, investors are keen to back firms like Reco that promise both innovation and protection.
