🛡️Upwind Raises $400M at $3.8B Valuation After Walking Away From Datadog

Datadog wanted Upwind, and it said no

Upwind just raised $400 million at a $3.8 billion valuation, and it did it by walking away from Datadog. The round, led by Bessemer Venture Partners with Greylock and Craft Ventures returning, nearly collapsed when Datadog tried to buy the company. Datadog wouldn't pay a premium over $3.8 billion, so Upwind stayed independent. Why should you care? Upwind sells runtime security, which means it watches live services and alerts or remediates attacks as they happen, not just during scans. If your team runs production workloads and is still bolting security on at deploy time, this is the category eating that budget. AI-driven threats are the reason investors are piling in. The numbers are wild. Upwind adds $20 million to $30 million in ARR every quarter and is projected to hit roughly $90 million by year end. Its valuation is over 40 times forecast ARR, which is well below the 80x Cyera fetched, but still rich. The round closed nine months after its last $250 million raise at $1.5 billion. The catch? Upwind still draws acquisition interest, and an eventual sale remains the most likely outcome. Datadog may come back.