Upwind raises $400 million after rejecting Datadog takeover offer

Cloud security startup Upwind has raised $400 million in a Series C round at a $3.8 billion valuation led by Bessemer Venture Partners, nine months after its previous round valued it at $1.5 billion, and after it turned down an acquisition approach from Datadog at the same valuation, TechCrunch reported.

Why it matters: A four-year-old security startup choosing a private round over a sale to a listed observability incumbent, at more than 40 times its forecast annual recurring revenue, shows how far buyers and venture investors are bidding for AI-era cloud security assets.

Data as of TechCrunch report of October 28, 2026, read in full in this run; the financing terms and the Datadog approach rest on a person familiar with Upwind, and neither company had commented, so this item is single-sourced and graded C. Developing item.

Upwind, a San Francisco startup that secures cloud infrastructure in real time, has raised $400 million in a Series C round at a $3.8 billion valuation led by Bessemer Venture Partners, with existing backers Greylock Partners and Craft Ventures also taking part, TechCrunch reported. The round follows a $250 million financing nine months ago at a $1.5 billion valuation.

The funding nearly came apart when Datadog, the listed observability company, tried to buy Upwind, according to a person familiar with the company cited by TechCrunch. Datadog did not offer a premium over the $3.8 billion valuation set by the venture round, and Upwind chose to stay independent. The startup is adding $20 million to $30 million of annualized recurring revenue each quarter and is projected to end the year at roughly $90 million, which puts the valuation at more than 40 times forecast recurring revenue.

Upwind raises $400 million after rejecting Datadog takeover offer

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