It's one of those statistics that sounds almost too neat to be real: 71% of workers have used unapproved AI tools at work, according to recent Microsoft research. But for Ofer Klein and his co-founders at Reco, the number isn't just believable—it's the foundation of a business model.
On February 10, the AI-focused SaaS security startup closed a $30 million Series B, barely ten months after its last capital infusion. Zeev Ventures led the round, with participation from existing backers Insight Partners, boldstart ventures, and Angular Ventures. What's perhaps more revealing is the roster of first-time strategic investors: Workday Ventures, TIAA Ventures, S Ventures (the investment arm of SentinelOne), and Quadrille Capital. When corporate venture arms from enterprise software giants start writing checks, they're usually hedging against a problem they see coming.
The raise brings Reco's total funding to $85 million since its 2020 founding. That's a significant war chest for a company attacking what amounts to an invisible threat: the sprawl of AI tools across corporate environments that IT departments never approved, can't see, and definitely can't secure.
A Pivot Born of Necessity
Klein, alongside CPO Gal Nakash and CTO Dr. Tal Shapira, initially built Reco as a fairly straightforward SaaS security platform. Standard stuff—monitoring who had access to what, flagging risky permissions, the usual enterprise hygiene.
But somewhere along the way, the founders noticed something. ChatGPT wasn't just a curiosity employees were experimenting with on lunch breaks. It was becoming infrastructure. Same with a dozen other AI applications, some sanctioned by IT, most decidedly not. The company has since rebranded what it does as "Dynamic AI SaaS Security," a term that essentially means: we find the AI tools you didn't know your employees were using, then help you secure them.
Reco's platform now integrates with over 215 SaaS applications. It tracks everything from ChatGPT sessions to Microsoft Copilot deployments, monitoring the often-chaotic web of SaaS-to-SaaS connections, AI agent activity, and permissions sprawl across tools like Salesforce, Google Workspace, Slack, and Workday. For overwhelmed security teams, it's visibility into a category of risk that barely existed three years ago.
The company claims 500% year-over-year growth in 2024, with an additional 400% scale in 2025—though it should be noted these are unaudited company metrics, the kind startups love to tout in funding announcements. Reco now employs around 100 people split between the U.S. and Israel, according to Israeli business publication Calcalist. Its customer roster includes Waste Management, whose CISO Jerich Beason offered a quote for the funding announcement (as CISOs tend to do).
Why the Corporates Are Paying Attention
Series B rounds often follow a script: bring in a new lead investor, get your existing VCs to follow on, announce impressive (if unverifiable) growth metrics, promise world domination. What makes Reco's round worth a second look is the strategic capital.
Workday Ventures writing a check suggests the enterprise software behemoth is thinking hard about how its own platforms get secured—and perhaps how AI features within those platforms create new attack surfaces. S Ventures, in a blog post explaining its investment, pointed to the governance vacuum as AI tools multiply across organizations. It's the kind of validation that matters, even if it's also self-serving.
SecurityWeek noted the Series B follows a $30 million Series A in June 2022 (co-led by Insight Partners and Zeev Ventures) and a $25 million Series A extension in April 2025. That's a lot of capital in a relatively short window, which either signals aggressive growth or aggressive burn, possibly both.
The Market Reco Is Betting On
The company says it will deploy the fresh capital across the predictable buckets: engineering, product development, go-to-market expansion, global growth. Standard playbook stuff.
What's less standard is the tailwind behind the company. Industry analysts have been sounding alarms with increasing urgency. Gartner projected in November 2025 that 40% of enterprises will face shadow AI-related breaches by 2030. IBM's annual data breach reports have flagged AI adoption outpacing governance controls, a mismatch that adds both complexity and cost to security incidents. Research from KPMG earlier this year found that nearly half of U.S. workers admit to uploading sensitive data to public AI tools—a statistic that should keep CISOs awake at night.
For Reco, this isn't a crisis. It's the entire addressable market.
There's a certain irony here, worth noting. The same technology creating the security problem—generative AI—is also part of Reco's solution. The company uses AI to detect and classify AI usage, a hall-of-mirrors dynamic that feels very 2026.
Whether Reco can translate visibility into lasting defensibility remains an open question. SaaS security is a crowded space, and the big cybersecurity incumbents aren't exactly sitting still. But for now, Klein and his team have resources, momentum, and a problem that shows no signs of slowing down. In enterprise security, that's about as good as it gets.
