Upwind raises $400M after walking away from Datadog acquisition offer
Upwind, a San Francisco-based AI cybersecurity startup, raised $400M in Series C funding at a $3.8B valuation. The round was led by Bessemer Ventures and followed a rejected acquisition offer from Datadog. Upwind reported $90M in projected annual recurring revenue, valuing it at over 40 times its forecast ARR. The company aims to remain independent despite acquisition interest.
How this was made
The 30-second read
Why it matters
The deal fallout introduces uncertainty for Datadog's growth outlook while highlighting Upwind's fundraising strength.
Market read
Primary relevance is to Datadog's stock due to the missed acquisition; Upwind remains private.
What to watch
Potential strategic partnerships for Upwind beyond Datadog could drive future upside.
Background
Upwind raised $400M at a $3.8B valuation after walking away from a Datadog acquisition offer.
Ticker impact
Datadog's attempted acquisition of Upwind was rejected, indicating a missed M&A opportunity for Datadog.
likely pressure as investors reassess growth prospects
Datadog disclosed an offer below valuation and the target chose independence, removing a potential boost to revenue and market share.
Market effects
Signals caution for the broader AI‑cybersecurity sector as valuation expectations are tested.
Limited to U.S. tech equities, with no immediate regional spillover.
Minor global impact; primarily relevant to investors tracking AI security startups and Datadog.
Counterpoint
The rejection may free Upwind to pursue higher‑valued partners, ultimately benefiting the sector.
Key entities
- CompanyUpwind
Private AI‑cybersecurity startup that raised $400M Series C.
- CompanyDatadog
Public cloud‑monitoring firm (DDOG) that attempted to acquire Upwind.
