Cloud security startup Reco raises $25M in funding - SiliconANGLE (2025)

Recolabs Inc., a startup that helps companies secure their software-as-a-service applications, has closed a $25 million funding round to enhance its technology.

The investment was announced today. It included the participation of Insight Partners, Zeev Ventures, boldstart ventures, Angular Ventures and Redseed. Rico claims the cash infusion follows a year in which its annual recurring revenue grew fivefold.

Before a company can check that its employees’ SaaS applications are secure, it has to find those applications. That’s not always straightforward because workers often subscribe to cloud services without the information technology team’s knowledge. Reco provides a platform that can automatically map out employees’ SaaS applications to save time for IT teams.

After identifying the cloud services that are used in an organization, Reco scans them for cybersecurity issues. It uses a collection of artificial intelligence agents to carry out the task.

According to Reco, its AI canspot if some of the employee accounts in a SaaS application has access to more business data than strictly necessary. The platform also identifies login credentials that aren’t actively used. In the event of a breach, hackers can exploit unused and misconfigured accounts to steal data that otherwise wouldn’t be accessible.

User accounts aren’t the only source of risk in SaaS environments. A growing number of SaaS applications include generative AI features such as customer support chatbots. In the event of a configuration issue, an embedded AI tool might make sensitive data entered by one user accessible to other customers. Reco says its platform can detect such AI data leaks, as well as integrations through which a SaaS application might leak information to other cloud workloads.

In addition to detecting cybersecurity issues, the software spots attempts by hackers to exploit those issues. It can identify unusual data access patterns that suggest an employee account may have been compromised. Reco provides a natural language description of potential breaches, as well as a timeline of the cybersecurity events associated with each incident.

The company’s platform doubles as a compliance tool. Companies can use it to check whether their SaaS environments adhere to regulations such as the GDPR privacy regulation. To ease the task, Reco provides several hundred prepackaged detection controls, automated workflows that spot issues as misconfigured security settings.

“The adoption of AI apps and agents has made SaaS security more complex and dynamic than ever,” said co-founder and Chief Executive Officer Ofer Klein. “Combine this with the proliferation of SaaS apps including shadow apps, and we’re seeing a growing gap between the reality of the ecosystem and what legacy SSPM tools can provide.”

Reco will use its new capital to enhance the AI agents that power its platform and add support for more SaaS applications. In conjunction, the company will establish more channel partnerships to boost sales.

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