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Upwind in talks to raise $250 million at up to $1.5 billion valuation

Upwind is in discussions to raise more than $250 million in fresh funding at a valuation ranging between $1.2 billion and $1.5 billion, a move that could place the San Francisco-based company firmly in the unicorn club. The talks, reportedly involving investors such as Bessemer Venture Partners and Picture Capital, come amid signs of a broader rebound in cybersecurity funding.

Founded in 2022, Upwind has grown rapidly, closing a $100 million Series around in December 2024 that tripled its valuation over 15 months to about $900 million. If the new round is finalised, it would underscore a sharp shift in investor sentiment after a prolonged slowdown that saw few cybersecurity startups achieve billion-dollar valuations.

Between mid-2022 and early 2024, early-stage security firms struggled to attract large checks as investors pushed back against high burn rates and limited revenue. That freeze began easing in 2024, and momentum has picked up further in early 2026, with multiple security vendors reaching unicorn status through sizeable funding rounds.

Cloud Security Funding Regains Momentum

Upwind raise would also mark a turnaround for the cloud security segment, which experienced a difficult 2025. According to industry trackers, cloud security ranked among the least-funded cybersecurity categories last year, as capital flowed heavily toward AI-focused security startups.

The contrast with 2024 is notable. That year saw significant investment in cloud security, driven in large part by Wiz’s $1 billion funding round. Market surveys indicate strong demand ahead, with a majority of enterprises planning to increase cloud security spending in 2026, reflecting the growing importance of protecting cloud-native environments.

Mergers and acquisitions, meanwhile, have remained active. Google’s agreement to acquire Wiz for $32 billion highlighted the strategic value of cloud security platforms, even as many smaller players struggled to scale independently.

Betting on Runtime Security and AI

Upwind is positioning itself as a next-generation alternative to established vendors such as Palo Alto Networks, CrowdStrike and Wiz. Rather than relying on static configuration analysis, the company focuses on real-time runtime insights to detect and prioritise threats across cloud workloads, APIs and AI systems.

Led by co-founder and CEO Amiram Shachar who previously sold Spot.io to NetApp, the company is also embedding AI into both its security operations and protections for AI model training and deployment. Upwind says this approach enables faster detection and remediation of vulnerabilities, including risks specific to AI-driven environments.

Despite its rapid rise, analysts note that Upwind still faces a long road to scale in a market dominated by well-capitalised incumbents. Whether the company evolves into a standalone platform or becomes part of a larger cybersecurity ecosystem remains to be seen, but securing a unicorn valuation just over three years after launch marks a significant milestone in its growth story.