Upwind expands funding round to $400 million at $3.8 billion valuation
The Israeli cloud-security company has increased the financing from the $300 million announced in September, retaining a valuation more than double its January level.
Israeli cloud-security company Upwind Security has increased its latest funding round to $400 million, according to the updated figures, while retaining the $3.8 billion valuation it announced in September. The financing marks a sharp rise from the $1.5 billion valuation the company reached in January, reflecting investor appetite for cybersecurity companies securing cloud infrastructure and AI systems.
The September announcement put the round at $300 million, led by Bessemer Venture Partners and TCV. The expanded total would bring the financing to $400 million, with Canapi Ventures and existing investors also participating, according to the updated information. Other investors include Cyberstarts, Greylock Partners, Craft Ventures, Leaders Fund, Salesforce Ventures, Alta Park Capital, Penny Jar Capital, Cerca Partners, Swish Ventures and Picture Capital.
The increase comes amid reports that US software company Datadog had considered acquiring Upwind.
Founded in 2022 by Amiram Shachar and his former partners at Spot.io, Upwind develops software that monitors cloud environments in real time. Spot.io was acquired by NetApp for $450 million in 2020. Upwind's approach, known as runtime-first security, focuses on identifying vulnerabilities and threats in live systems rather than relying primarily on static scans that may flag risks that cannot be exploited in practice.
The company's valuation has climbed from between $800 million and $900 million in late 2024 to $1.5 billion in January and $3.8 billion in September. CTech reported that Upwind's annual recurring revenue had exceeded $50 million, compared with approximately $20 million at the end of 2025.
Upwind has also expanded beyond conventional cloud security as businesses deploy more AI infrastructure and autonomous agents. In September, it acquired Israeli startup Aegis in a stock-based transaction reportedly worth tens of millions of dollars and established Upwind AI Labs to focus on threats targeting AI systems and AI-driven workflows.
“AI is fundamentally transforming cloud infrastructure architecture, the scope of cyber threats, and the very way organizations build and operate software,” Shachar said. He added that security teams need real-time context to understand how cloud infrastructure and AI interact, identify critical exposures and detect attacks as they happen.
Upwind's platform combines information from cloud workloads, APIs and client-side agents to help security, development and DevOps teams identify and prioritize risks. The company argues that this context can help organizations distinguish exploitable vulnerabilities from less urgent alerts and respond to threats in real time.
“Security must keep pace with environments that AI agents can alter, at a speed and scale that human teams alone cannot match,” Shachar said. “By combining real-time intelligence with the context needed to understand and remediate risks, we help organizations shift from alert management to proactive security.”
