Reco raises $25M to tame the chaos of modern SaaS
With over 1,000 apps per company, cybersecurity’s blind spot just got bigger.
As enterprises lean harder into artificial intelligence and cloud-based applications, the sprawling mess of digital tools used across an organization is becoming one of the biggest cybersecurity blind spots of the decade. Now, a Tel Aviv-based startup says it has the solution—and investors are lining up.
Full list of Israeli high-tech funding rounds in 2025
Reco, a startup offering what it calls “Dynamic SaaS Security,” announced on Tuesday that it has raised $25 million in fresh funding, bringing its total capital raised to $55 million. The round was led by Insight Partners, alongside Zeev Ventures, boldstart ventures, Angular Ventures, and new investor Redseed.
The funding follows a 5x increase in annual recurring revenue (ARR) over the past year, according to the company, amid rising demand for tools that can secure the ever-expanding universe of software-as-a-service (SaaS) platforms—and their increasingly invisible users.
The scale of the challenge is staggering. According to industry data cited by Reco, the average organization now operates more than 1,000 SaaS applications, a number that has risen 26% in just two years. Meanwhile, 80% of employees admit to using unauthorized SaaS and AI tools, often referred to as "shadow IT." These tools account for more than a third of data breaches, with the average incident now costing nearly $5 million, according to IBM.
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“The adoption of AI apps and agents has made SaaS security more complex and dynamic than ever. 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. Businesses need security solutions to be proactive vs. just reactive – simplifying security without slowing down the business,” said Reco CEO and co-founder Ofer Klein.
Reco claims its platform is 10x faster than competitors and requires 80% less implementation and maintenance, allowing companies to keep pace with new tools and threats as they emerge.
At the heart of Reco’s offering is its proprietary SaaS App Factory, a discovery engine that identifies, classifies, and secures SaaS applications—more than 175 today—with new ones integrated within days, not months. The company is also preparing to launch AI-powered security agents designed to assist teams by triaging alerts, identifying risks, and easing workloads.
