Upwind raises $400M at $3.8B valuation, reportedly after turning down Datadog
Cloud security startup Upwind said it raised $400 million led by Bessemer Venture Partners at a $3.8 billion valuation. TechCrunch, citing an unnamed source, reports it declined a Datadog acquisition offer at the same price.
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The story, neutrally told
Centre · 2Cloud security startup Upwind said on Wednesday 28 October that it raised $400 million in a funding round led by Bessemer Venture Partners, valuing it at $3.8 billion. CNAN “Cloud security startup Upwind on Wednesday said it raised $400 million in a funding round led by Bessemer Venture Partners, valuing it at $3.8 billion.” Read at CNA ↗ TechCrunchN “has raised a $400 million Series C round at a $3.8 billion valuation led by Bessemer Ventures” Read at TechCrunch ↗ Centre · 1Existing investors including Greylock Partners, Cyberstarts, Craft Ventures, Salesforce Ventures, Alta Park and TCV also took part, and Canapi Ventures joined as a new backer. CNAN “Existing investors including Greylock Partners, Cyberstarts, Craft Ventures, Salesforce Ventures, Alta Park and TCV also participated, while Canapi Ventures joined as a new backer” Read at CNA ↗ Centre · 1CNA says the round will fund product expansion and brings total funding since the company's 2022 founding to over $800 million. CNAN “The latest round, which will fund product expansion, brings the company's total funding to over $800 million since its founding in 2022” Read at CNA ↗
Centre · 2The round comes nine months after Upwind's previous $250 million financing; TechCrunch puts that valuation at $1.5 billion, while CNA says no valuation was disclosed for it. TechCrunchN “The round comes nine months after Upwind closed its previous $250 million financing at a $1.5 billion valuation.” Read at TechCrunch ↗ CNAN “its $250 million Series B funding nine months ago came without a disclosed valuation” Read at CNA ↗ Centre · 1CNA also reports that Upwind was valued at about $900 million in a December 2024 raise of $100 million. CNAN “The startup was valued at about $900 million in a December 2024 raise of $100 million” Read at CNA ↗ Centre · 1According to TechCrunch, citing a person familiar with Upwind, the funding nearly fell apart when Datadog, a publicly traded observability company, tried to buy Upwind. The person said Datadog offered no premium over the $3.8 billion venture valuation, so Upwind stayed independent. TechCrunchN “nearly fell apart after Datadog attempted to buy the company, according to a person familiar with Upwind.”“It didn’t offer a premium above the $3.8 billion valuation set by venture capital investors, the person said, so Upwind decided to stay independent.” Read at TechCrunch ↗
Centre · 1TechCrunch reports, citing a person familiar with the financials, that Upwind adds $20 million to $30 million in annualized recurring revenue each quarter and is projected to end the year at roughly $90 million. That implies a valuation of more than 40 times forecast ARR, below the 80 times TechCrunch reported for the security startup Cyera earlier this year. TechCrunchN “The startup has been adding $20 million to $30 million in annualized recurring revenue (ARR) each quarter and is projected to end the year at roughly $90 million”“VCs and Datadog valued the startup at more than 40 times its forecast ARR” Read at TechCrunch ↗ Centre · 1TechCrunch describes the San Francisco company as using AI to secure cloud infrastructure, with a "runtime" approach that alerts on and remedies attacks in active services in real time. Founder Amiram Shachar previously sold Spot.io to NetApp for $450 million. TechCrunchN “Upwind calls its approach to thwarting threats “runtime” security, which means it alerts and remedies attacks and vulnerabilities in active services in real time.”“The startup was founded by Amiram Shachar, who sold his previous company, the cloud spend management startup Spot.io, to NetApp for $450 million.” Read at TechCrunch ↗ Centre · 1TechCrunch's reporter assesses that an eventual sale remains the most likely outcome, given how few cybersecurity companies have gone public, and a source says Upwind continues to draw acquisition interest. TechCrunch said it had asked Upwind and Datadog for comment. TechCrunchN “given how few cybersecurity companies have gone public in recent years, an eventual sale remains the most likely outcome for the startup.”“TechCrunch has reached out to both Upwind and Datadog for comment.” Read at TechCrunch ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre2 outlets
- Framing
- CNA runs a short funding brief with bullet points on past valuations and investors; TechCrunch frames the round around Upwind reportedly rejecting a Datadog offer and the likelihood of a later sale.
- Emphasis
- CNA: round size, investors, funding history. TechCrunch: Datadog bid, revenue growth, valuation multiples.
- Leaves out or plays down
- CNA does not mention the Datadog offer, revenue or the founder's background. TechCrunch does not list the full investor group or the December 2024 raise.
- Charged language
- “walking away”
- For example
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“The latest round, which will fund product expansion, brings the company's total funding to over $800 million since its founding in 2022” — CNA
“By walking away from an acquisition offer, Upwind clearly believes that the company will be ultimately worth more than $3.8 billion” — TechCrunch
Right0 outlets
No right outlet in our sources has covered this story yet.
What every side reports
- Upwind raised $400 million at a $3.8 billion valuation in a round led by Bessemer Venture Partners.
- Greylock Partners and Craft Ventures are existing investors that took part.
- The previous financing was a $250 million round about nine months earlier.
Where accounts differ
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Valuation of the previous $250 million round
- Centre
- CNA says it came without a disclosed valuation; TechCrunch says it was at $1.5 billion.
Upwind organisation
Announced the $400 million round, which CNA says will fund product expansion. TechCrunch, citing a source, says it chose independence over Datadog's offer; the company's own comment on that was not reported.
“which will fund product expansion” — CNA
“so Upwind decided to stay independent.” — TechCrunch
Bessemer Venture Partners organisation
Led the round.
“in a funding round led by Bessemer Venture Partners” — CNA
Datadog organisation
Reportedly attempted to buy Upwind without offering a premium over $3.8 billion; TechCrunch had asked it for comment.
“It didn’t offer a premium above the $3.8 billion valuation set by venture capital investors” — TechCrunch
Left0 articles
No coverage yet.
Centre2 articles
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CNAN ·
Cloud security startup Upwind raises $400 million, valued at $3.8 billion
Neutral Brief wire-style funding report listing round size, valuation history and investors.
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Upwind raises $400M after walking away from Datadog acquisition offer
Neutral Deal analysis built on anonymous sources, centred on the rejected Datadog offer and valuation versus revenue.
Right0 articles
No coverage yet.
- 28 Oct 14:11 First CNAN Cloud security startup Upwind raises $400 million, valued at $3.8 billion
- 28 Oct 23:15 +9h 4m TechCrunchN Upwind raises $400M after walking away from Datadog acquisition offer
Times are when each article was published, or when we first saw it if the outlet gave no time.
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