Reco, an AI security startup, has raised a $55 million extension to its Series B, bringing total funding to $140 million. The new round included AT&T’s venture arm, Forestay, and Quadrille Capital. CEO Ofer Klein said the company’s valuation has “more than doubled” since the original $30 million Series B in February and is in the “high hundreds of millions,” though he declined to share specifics.

The funding news lands amid a crowded market for AI agent security. The article notes that public Crunchbase and PitchBook profiles show at least two dozen companies selling some form of AI agent security, with different approaches: some vet the tools agents use, others control what data agents can reach, some like CrowdStrike add detection and response controls on devices, and still others focus on unapproved AI usage. Reco itself was mostly selling software to map and secure SaaS and AI platforms until last year, and has now repositioned around a broader solution using a context graph that connects agents to apps, people, accounts, and permissions, letting security teams see what an agent can reach and cut off unnecessary access.

Klein said the biggest shift in the past year is that companies are building and deploying AI agents faster than they can track them. At one Fortune 100 customer, Reco’s platform found 21,000 agents the company didn’t know about. At a large financial services customer, the startup says it identified an agent set up by an ex-employee that could access Salesforce and share data with an unseen domain. “The market demand right now for agent security is not only about the agent itself; it’s about the entire ecosystem end-to-end,” Klein told TechCrunch.

Other security startups report similar pressure. HiddenLayer’s CEO, Chris Sestito, said more than 50 of his customers have AI agents in production touching critical systems and sensitive assets, and that risk goes from theoretical to “full scale really quickly” once agents reach production. Cymphony said it found about 85,000 files accessible to AI tools and agents at one U.S. public company.

Reco currently has more than 100 customers, with financial services accounting for about 40% of its business. Annual recurring revenue is in the “double-digit millions of dollars,” according to Klein, who expects it to triple this year. The company integrates with more than 280 apps and says new integrations can be added within days. It also uses browser and network signals to find agents outside apps it connects to directly, and has controls to inspect prompts and tool calls. The new funding will go toward hiring, sales, partnerships, and customer support.