Upwind Raises $400M, Turns Down Datadog Bid — SkimNews
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- Upwind raised a $400 million Series C at a $3.8 billion valuation, led by Bessemer Venture Partners with participation from existing backers Greylock Partners and Craft Ventures.
- Datadog attempted to buy Upwind, nearly derailing the $400 million round, but did not offer a premium above the $3.8 billion investor-set valuation; Upwind stayed independent.
- Upwind closed its previous $250 million financing nine months earlier at a $1.5 billion valuation.
- Upwind has added $20 million to $30 million in annualized recurring revenue each quarter and is projected to end the year at roughly $90 million ARR.
- Upwind was valued at more than 40 times its forecast ARR, below the 80x ARR fetched by fast-growing cybersecurity startup Cyera earlier this year.
- Upwind continues to draw acquisition interest despite rejecting Datadog; with few cybersecurity companies going public in recent years, an eventual sale remains the most likely outcome.
Why it matters: Upwind’s backers secure a $3.8 billion valuation after nine months, while Datadog fails to acquire a business adding $20 million to $30 million in ARR each quarter. Upwind retains independence and continued acquisition interest, giving investors a higher paper mark while an eventual sale remains the most likely exit.
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