Upwind Snubs Datadog for a $400 Million Power Move
The San Francisco security startup just walked away from a multi-billion dollar buyout offer to prove they’re worth the $3.8 billion hype.
Most startup founders spend their nights dreaming of a multi-billion dollar exit. Upwind founder Amiram Shachar just looked at one and decided to swipe left.
The San Francisco-based cloud security shop just closed a $400 million Series C, valuing the firm at $3.8 billion. This comes only nine months after their last $1.5 billion payday, proving that the AI-driven cybersecurity money printer is still running at full tilt.
The deal almost didn't happen because observability giant Datadog tried to crash the party with an acquisition offer. However, Datadog reportedly refused to pay a premium over the $3.8 billion valuation set by VCs, so Upwind chose independence and the fresh cash instead.
- The round was led by Bessemer Venture Partners with assists from Greylock and Craft Ventures.
- Upwind is projected to hit $90 million in ARR by year-end, growing by roughly $25 million every quarter.
- Shachar is a repeat winner, having previously sold Spot.io to NetApp for $450 million.
The startup specializes in "runtime" security, which essentially means they hunt and kill threats in real-time while cloud services are actually active. It’s a high-stakes niche that industry insiders expect to be the next massive wave of corporate AI spending.
While ghosting a public company's checkbook is a gutsy move, Upwind clearly thinks they’re just getting started. If they keep doubling their revenue every few months, that $3.8 billion price tag might soon look like a clearance rack bargain.
Source feed reference: Upwind raises $400M after walking away from Datadog acquisition offer