With each organization having more than 1,000 apps, cybersecurity's blind spot has only become wider.

One of the largest cybersecurity blind spots of the decade is the disorganized jumble of digital tools utilized throughout an organization as businesses rely more on cloud-based apps and artificial intelligence. Investors are lined up after a business located in Tel Aviv claims to have the answer.

Bringing its total capital raised to $55 million, Reco, a startup that offers what it calls Dynamic SaaS Security, revealed on Tuesday that it has raised an additional $25 million. Together with Zeev Ventures, Boldstart Ventures, Angular Ventures, and new investor Redseed, Insight Partners led the round.

Given the growing need for solutions that can safeguard the ever-expanding world of SaaS platforms—and its more invisible users—the financing comes after the business reported a five-fold growth in annual recurring revenue (ARR) over the previous year.

The task is enormous in scope. Reco highlighted industry statistics showing that the average firm now runs over 1,000 SaaS apps, a 26% increase in only two years. Additionally, 80% of workers acknowledged the use of unapproved SaaS and AI tools—often referred to as "shadow IT." According to IBM, about one-third of data breaches are caused by these technologies, and the average incident now costs close to $5 million.

Reco asserts that its platform is ten times quicker than rivals and necessitates 80% less setup and upkeep, enabling businesses to stay ahead of emerging dangers and new technologies.