Software Technology

Upwind Secures $400 Million Funding Round After Rejecting Datadog Buyout

Upwind completed an upsized $400 million Series C financing round at a $3.8 billion valuation led by Bessemer Venture Partners after walking away from an acquisition offer from Datadog. The platform expanded annual recurring revenue past $50 million, securing total funding of more than $800 million to scale its runtime enterprise cloud security technology.

By Tumisang Bogwasi October 29, 2026 2 min read

Cloud security startup Upwind has raised a $400 million financing round at a $3.8 billion valuation, opting for independent growth after turning down an acquisition offer from enterprise software firm Datadog.

TEL AVIV, Israel: Upwind completed a $400 million Series C investment led by Bessemer Venture Partners, establishing a $3.8 billion market valuation for the runtime security provider. The capital infusion bolsters the company’s enterprise footprint after leadership rejected an acquisition bid from cloud monitoring giant Datadog valued near $4 billion.

Highlights

Upwind finalized a $400 million Series C round at a $3.8 billion valuation.
The funding follows management decisions rejecting an acquisition bid from Datadog.
Annual recurring revenue climbed past $50 million following rapid customer enterprise adoption.
Enterprise clients increasingly prioritize continuous runtime security telemetry over legacy vulnerability scans.

The financing establishes Upwind as an independent force in cybersecurity as chief executives prioritize continuous workload protection across hybrid cloud and artificial intelligence infrastructure. Enterprise software firms face growing pressure from chief information security officers who demand operational platforms capable of stopping active cloud intrusions in real time.

Founded in 2022 by chief executive officer Amiram Shachar, Upwind protects enterprise infrastructure through an innovative runtime architecture built on eBPF sensors. The technology observes running software processes and artificial intelligence agents directly inside operating system kernels without degrading system performance.

Financial performance disclosures indicate significant commercial acceleration for the vendor across multinational corporations. Upwind experienced a fourfold expansion over the prior year, pushing annual recurring revenue past $50 million compared to approximately $20 million recorded at the conclusion of 2025.

The round expands cumulative equity backing to more than $800 million, arriving nine months after a $250 million Series B investment that priced the business at $1.5 billion in January 2026. The rapid valuation appreciation demonstrates persistent private capital support for differentiated cybersecurity platforms amid a broader consolidation trend in enterprise software.

Middle East Capital Implications

The liquidity event reinforces Israel’s standing as a premier destination for late-stage venture capital despite regional geopolitical frictions. Global institutional funds continue allocating capital toward cybersecurity innovators that demonstrate capital efficiency, expanding domestic tech liquidity while supporting stability in the local foreign exchange ecosystem.

For enterprise operators, Upwind’s independence preserves vendor diversity in an enterprise security market increasingly consolidated by legacy technology conglomerates. Corporate balance sheets across emerging markets and mature hubs benefit from specialized runtime tools that curb costly data breaches without introducing prohibitive software licensing premiums.

By turning away from an immediate liquidity exit via Datadog, Upwind management has initiated a growth trajectory aimed directly at a public equity offering. The firm now holds sufficient balance sheet reserves to finance aggressive research development and international sales distribution, intensifying competition across enterprise risk management providers globally.