The Age of Dynamic SaaS Security is Here! (Reco Accelerates with Additional $25M Funding)

This week marks an exciting milestone in Reco's journey. We're thrilled to announce $25 million in additional funding with participation from Insight Partners, Zeev Ventures, boldstart ventures, Angular Ventures, and our new investor Redseed. This brings our total funding to $55 million – capital that will fuel our mission to close the SaaS Security Gap with Dynamic SaaS Security.

But this announcement is about much more than the funding itself. It's validation of a vision we've been championing since day one: traditional, static approaches to SaaS security simply cannot keep pace with today's rapidly evolving digital ecosystem.

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→ See our coverage in Business Insider

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SaaS is Sprawling Beyond Security Control

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The average enterprise now runs over 1,000 SaaS applications – a 26% increase in just two years. Meanwhile, 80% of employees admit to using shadow SaaS and AI tools without authorization, contributing to 35% of data breaches. With the average breach now costing $4.88 million, the stakes couldn't be higher.

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Traditional SaaS security tools were designed for a different era – one where applications changed slowly, integrations were minimal, and AI wasn't embedded into every tool. Today's reality is dramatically different:

• App Sprawl: Applications constantly multiply and form SaaS-to-SaaS connections
• AI Sprawl: The infusion of AI into SaaS apps and the surge of AI agents create new vulnerabilities
• Configuration Sprawl: Keeping security posture and compliance current has become practically impossible
• Identity Sprawl: The relentless proliferation of identities makes keeping accounts secure increasingly difficult
• Data Sprawl: Data gets copied, pasted, and exchanged through AI and integrations.

This isn't just a theoretical problem. We hear from our customers that static security approaches create more friction than protection. They're forced to choose between business agility and robust security – a choice no organization should have to make.

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Why Our Investors Are Betting on Dynamic SaaS Security

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When we began our latest funding conversations, we didn't just pitch numbers and growth projections. We shared our vision for Dynamic SaaS Security – an approach that evolves with SaaS sprawl, no matter how fast it moves.

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What convinced investors to bet on Reco wasn't just our 5x growth in ARR or tripling of our customer base. It was our proven ability to deliver what others couldn't:

1. Speed of Integration: Our SaaS App Factory™ can integrate new apps in 3-5 days, compared to the months-long timelines of legacy providers.
2. Broader Coverage: Reco offers the most SaaS application coverage of any provider, currently supporting 175 applications – 2-3x more than other leading vendors.
3. The Only End-to-End Platform: Reco is the only player in the market offering a true end-to-end solution for securing the full SaaS application lifecycle. Our platform combines multiple core capabilities into one unified system — operating 10x faster than existing tools, while cutting security costs and maintenance efforts by up to 80%.
4. Real Results: We've achieved an NPS of 82 across our customer base – extraordinary for enterprise security software and a testament to the value we deliver.

In the words of Praveen Akkiraju, Managing Director at Insight Partners: “Reco has identified a critical security gap that legacy vendors typically cannot address. Reco is transforming SaaS security – delivering seamless execution that scales with enterprise needs and is fueled by deep customer trust. Their innovative approach to Dynamic SaaS Security and exceptional team position them to lead this rapidly expanding market.” 

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What's Next: AI-Native Security for AI-Powered SaaS

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This funding isn't just about scaling what we've built – it's about accelerating our vision of AI-native security for the modern enterprise.

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We're expanding our SaaS App Factory™ to support even more applications while maintaining our industry-leading integration speeds. And we're introducing Reco AI Agents for alerts and identities – becoming the first in the industry to offer agents designed specifically to help security teams streamline operations and extract actionable insights from SaaS.

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As our customer Mihau Faur, CIO at UiPath, noted: "We've witnessed firsthand how Reco transforms SaaS security from a constant struggle to a strategic advantage. Their technology reduces our team's workload significantly while providing substantially better visibility and protection across our rapidly evolving SaaS environment."

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A Market on the Rise — and We’re Here to Lead It

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We’re here to lead the SaaS Security market — a space we believe is on the verge of massive growth, much like what we’ve seen in Cloud Security. As SaaS adoption becomes widespread across organizations, the need for dedicated, modern security solutions is no longer optional — it’s urgent.

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With Dynamic SaaS Security, we're proving that security doesn't have to be a barrier to progress. It can be an enabler, providing the confidence to embrace new technologies without compromising protection.

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Don't just take my word for it – our investors' commitment speaks volumes. The age of Dynamic SaaS Security is here, and Reco is leading the charge.

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Learn more at reco.ai or schedule a demo here.

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