Datadog in talks to acquire Upwind for $1 billion
The deal would see the Israeli cybersecurity startup exit just three years after its founding.
Israeli cybersecurity company Upwind is in talks to be acquired by Datadog for an estimated $1 billion. Upwind raised $100 million in Series A funding last December. The company’s valuation in the round was estimated at approximately $900 million, reflecting a 300% increase from its previous funding round in September 2023.
The Series A round was led by Craft Ventures, led by David Sacks, and also saw participation from new investors TCV and Alta Park Capital. Existing investors, including Greylock, Cyberstarts, Leaders Fund, Cerca, and Sheva (founded by former NBA player Omri Casspi), also participated.
Upwind, which has now raised a total of $180 million since its founding in late 2022, was established by Amiram Shachar, along with his founding partners from Spot.io (which was sold to NetApp for $450 million in 2020): Liran Polak, Lavi Ferdman, and Tal Zuri.
The company has developed a cloud security platform, often referred to as a CNAPP (Cloud-Native Application Protection Platform). This platform helps organizations focus on real risks rather than being overwhelmed by irrelevant threats. Upwind's solution consolidates various security functions, such as Cloud Security Posture Management (CSPM), Cloud Workload Protection (CWPP), Cloud Detection and Response (CDR), vulnerability management, identity security, and container security into one comprehensive offering.
Datadog, a U.S.-based software company valued at around $50 billion, develops a leading Software-as-a-Service (SaaS) platform for monitoring servers, databases, applications, and IT infrastructure. Its real-time monitoring and analytics tools give developers and IT teams comprehensive visibility into system performance.
Datadog has acquired several Israeli companies in the past, but for much smaller sums. Its local acquisitions include API observability platform Seekret in 2022 and Ozcode.
