Business · Companies · 4 hrs ago
Upwind raises $400 million after declining Datadog acquisition offer
San Francisco startup Upwind raised $400 million in a funding round that values the company at $3.8 billion.
The four-year-old company uses AI to protect cloud systems, including by detecting and addressing attacks in active services.
Datadog tried to buy Upwind, but its offer did not exceed the valuation investors had set for the company.
Upwind chose to remain independent and complete its funding round, nine months after raising $250 million at a $1.5 billion valuation.
The new funding reflects investor confidence in cloud cybersecurity, as companies face growing AI-driven security threats.
Upwind is adding $20 million to $30 million in annualized recurring revenue each quarter and is projected to end the year at about $90 million.
The startup still attracts acquisition interest, and a sale may remain a likely eventual outcome, though no deal is announced.
Upwind raised $400 million in a Series C round at a $3.8 billion valuation, led by Bessemer Venture Partners.
The San Francisco cloud security startup reportedly declined an acquisition offer from Datadog before completing the funding round.
The sources differ on the reported offer: SC Media says it was $4 billion, while TechCrunch says Datadog offered no premium over the $3.8 billion valuation.
Upwind plans to use the funding for product development and market expansion.
- Who
- Upwind, a San Francisco cloud security startup.
- What
- It raised $400 million in a Series C round after reportedly declining an acquisition offer from Datadog.
- When
- October 28, 2026, when the reports were published.
- Where
- San Francisco, where Upwind is based.
- Why
- The funding is intended to support product development and market expansion.
This story does not have two clearly opposing sides.
Upwind closed a $250 million financing at a $1.5 billion valuation, according to TechCrunch.
Datadog attempted to buy Upwind; the reports differ on the offer's value.
Upwind's $400 million Series C round at a $3.8 billion valuation was reported.
- Series C funding
- $400 million
- Valuation
- $3.8 billion
- Lead investor
- Bessemer Venture Partners
- Previous financing
- $250 million at a $1.5 billion valuation
- Reported Datadog offer
- SC Media: $4 billion; TechCrunch: no premium above $3.8 billion