Upwind, a company specializing in securing cloud infrastructure using artificial intelligence, announced the closing of a $400 million Series C funding round, bringing the company's valuation to $3.8 billion. The round was led by Bessemer Venture Partners, with participation from existing investors such as Greylock Partners and Craft Ventures.
Rejection of Acquisition Offer
Informed sources revealed that this funding round came after negotiations with Datadog, a company specializing in software monitoring tools, which attempted to acquire the company. According to sources, Upwind decided to move forward as an independent entity after Datadog made an offer that did not include a price premium over the valuation set by the new investors, which prompted management to reject the offer.
Accelerated Growth in the Cybersecurity Sector
Upwind was founded four years ago by Amiram Shahar, who previously sold his former company Spot.io to NetApp. The company relies on "Runtime Security" technology, which allows for the real-time monitoring and mitigation of threats and vulnerabilities in active services.
The company is experiencing rapid growth amid increasing AI-powered cyber threats, adding between $20 million to $30 million in Annual Recurring Revenue (ARR) every quarter, and is expected to end the year with revenues approaching $90 million.
Why Does This News Matter?
This development reflects the confidence of startups in the cybersecurity sector in their ability to achieve a market value higher than current acquisition offers, especially with cybersecurity being considered the third major wave in AI software after coding tools and customer support. However, acquisition remains an option in the future due to the scarcity of cybersecurity company IPOs in recent years, making Upwind a continuous target for interest from major companies.