Upwind abandons DataDog acquisition offer and raises $400 million

Israeli cybersecurity company Upwind is abandoning DataDog's acquisition offer and raising $400 million at a valuation of $3.8 billion, led by Bessemer Venture Partners. Revenues have quadrupled since the start of the year.

Israeli cybersecurity company Upwind, founded by serial entrepreneur Amiram Shachar, is abandoning the acquisition offer from American software company DataDog and instead raising $400 million at a valuation of $3.8 billion. The funding round was led by Bessemer Venture Partners, an existing investor in the company. DataDog, which trades on Nasdaq at a valuation of $100 billion, had been courting Upwind in recent months and made a similar acquisition offer, but the company's investors and founders chose to proceed with a capital raise due to positive momentum. Revenues have quadrupled since the start of the year, and the company is on an annual run rate of $80 million. New investors such as Canapi Ventures and existing investors, including funds from Stephen Curry and Omri Caspi, participated in the round. Upwind operates in the cloud security and AI space, competing with DataDog's AI Guard product.