Cloud Security Startup Upwind Targets $1.5B Valuation in New Funding

What happened

Israeli cloud security startup Upwind is in advanced talks to raise more than $250 million in new funding at a valuation between $1.2 billion and $1.5 billion. The round is backed by major investors, including Bessemer Venture Partners and Picture Capital. Upwind’s previous financing in late 2024 valued the company at about $800-$900 million, meaning this round would represent a significant increase in valuation.

Who is affected

The fundraising will affect enterprise security buyers and cloud-native organizations adopting consolidated security platforms. Upwind’s product, a cloud-native application protection platform (CNAPP), integrates multiple cloud security functions including posture management, workload protection, detection and response, vulnerability management, identity security, and container security into a unified solution.

Why CISOs should care

1. Market validation for CNAPPs: Upwind’s growing valuation reinforces demand for integrated cloud security solutions that unify multiple security controls, a trend shaping enterprise security strategies.
2. Vendor landscape impact: Increased funding may accelerate product development and competition among cloud security vendors, potentially influencing future procurement and integration decisions.
3. Consolidation pressures: The trend toward broader platforms could influence CISOs’ roadmap decisions, especially where managing disparate point tools is a priority.

3 Practical actions for CISOs

1. Reassess cloud security architecture: Review whether your current toolset aligns with the shift toward consolidated cloud security platforms like CNAPP to reduce complexity and improve coverage.
2. Benchmark against peers: Evaluate how competitors and peers are structuring cloud security investments to understand whether similar approaches could benefit your organization’s risk posture and efficiency.
3. Engage with emerging vendors: Include emerging funded vendors in your proof-of-concept cycles to ensure you’re aware of innovative capabilities and not locked into legacy architectures.