Reco raises $30 million as AI goes from 'blocked' to a must-have

Reco, a cybersecurity startup based in New York, has successfully raised $30 million in Series B funding, capitalizing on the rapid expansion of artificial intelligence (AI) across various industries. Founded in 2020 by Ofer Klein, Gal Nakash, and Tal Shapira, Reco aims to bridge the gap between existing cybersecurity measures and the AI tools utilized by employees. According to Klein, the trend of AI adoption has skyrocketed, with many companies that previously restricted AI access now embracing it. "I’m not referring to small businesses; this includes major players in finance, insurance, healthcare, and pharmaceuticals," he stated in an interview with Business Insider. The latest funding round was led by Zeev Ventures, with contributions from existing investors such as Insight Partners and Boldstart Ventures. New participants included prominent corporate investors like Workday Ventures and TIAA Ventures. Oren Zeev, a noted seed investor, expressed confidence in Reco's potential, stating, "The signals we see show rapidly growing market demand for AI SaaS security, and we are experiencing exceptional growth." Despite recent downturns in software-as-a-service (SaaS) stocks due to AI disruption concerns, Zeev perceives a significant opportunity within the AI security sector. Reco reported an impressive growth trajectory, with a 500% increase year-over-year in 2024, followed by an additional 400% rise in 2025, fueled by heightened business adoption of AI. In 2025, cybersecurity startups collectively raised nearly $14 billion, marking a 47% increase from the previous year and the highest funding levels since 2021. Klein noted that Reco has attracted larger clients than anticipated, consistently surpassing internal growth projections. "We built a plan, and we overachieved, and we updated the plan, and we overachieved again," he explained. As demand surges, Klein highlighted that the primary challenge for Reco is scaling operations to meet this market need. "Our biggest challenge right now is how we grow fast enough to rise to this demand for AI enablement," he remarked. The co-founders of Reco bring a wealth of experience, with Nakash having previously led research at the Office of the Prime Minister of Israel, and Shapira holding a Ph.D. in machine learning and also serving at the same office. Reco faces competition from players like Torq, which has a valuation of $1.2 billion, and Blackstone-backed Cyera, valued at $9 billion according to PitchBook.