Cloud Security,
Cloud-Native Application Protection Platform (CNAPP),
Security Operations
Increasing Investments Could Enhance Cloud Security Competition Against Major Players
The cybersecurity landscape has experienced a significant shift, transitioning from a dry spell to a surge in funding for emerging companies.
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Between July 2022 and March 2024, no early-stage security startups achieved a valuation exceeding $1 billion, indicating a wary investor climate that penalized companies for mounting losses against minimal revenue. This trend began to change in April 2024, with Cyera securing a valuation of $1.4 billion alongside a $300 million funding round, marking it as the first new cyber unicorn since June 2022.
Fast forward nearly two years, and the scenario has rapidly evolved. Recently, New York-based automation startup Torq entered the unicorn sphere with a $1.2 billion valuation following its $140 million Series D funding. Meanwhile, Ghent, Belgium-based Aikido Security achieved unicorn status with a $1 billion valuation tied to its $60 million Series B round.
January could see another addition to this exclusive group, as San Francisco-based Upwind is reportedly in discussions to raise over $250 million at a valuation between $1.2 billion and $1.5 billion, according to a recent report from Calcalist. Prior to this, Upwind closed a $100 million Series A round in December 2024, tripling its valuation to $900 million within 15 months.
Cloud Security Investments Show Signs of Recovery Following 2025 Decline
Information Security Media Group’s requests for comments from Upwind went unanswered. Established in 2022, the company currently has a workforce of 337 and has accumulated $180 million in external funding, which includes a $50 million investment made in September 2023. Co-founder Amiram Shachar, who previously sold the cloud optimization firm Spot.io for $450 million to NetApp, leads the company.
Should Upwind secure this funding, it would represent a turnaround for the cloud security sector, which faced considerable challenges in 2025, capturing only 15 funding deals and ranking near the bottom of investment sectors tracked by Momentum Cyber. In contrast, 144 financing deals occurred within the artificial intelligence security domain, marking it as the most lucrative arena last year.
In 2024, the cloud security sector tallied $1.58 billion in venture funding, largely propelled by Wiz’s landmark $1 billion funding round in May. A report from Wiz indicates that 85% of organizations plan to increase cloud security expenditures in 2026, surpassing investment plans for other cybersecurity categories.
While 2025 was unproductive for cloud security investments, mergers and acquisitions (M&A) thrived, exemplified by Google’s $32 billion acquisition of Wiz, setting a record in cybersecurity acquisitions. The implications of this deal highlight the increasing emphasis on robust cloud defense mechanisms.
Upwind’s Innovative Approach to Cloud Security
Upwind aims to differentiate itself by moving away from conventional methods that rely on static data and configurations. The company focuses on real-time insights to deliver targeted security recommendations, addressing long-standing challenges including API protection and vulnerability detection. Shachar emphasized that Upwind is leveraging AI to enhance operational efficiencies and to secure AI model training and deployment.
AI plays a crucial role in streamlining vulnerability management and addressing emerging risks associated with data poisoning and model manipulation. Shachar highlighted the importance of safeguarding these processes, stating that a shield is necessary to ensure data integrity throughout the AI lifecycle.
Competing against established firms like Palo Alto Networks, CrowdStrike, and Wiz, Upwind asserts that its technology stands apart from legacy systems. Shachar maintained that Upwind’s solutions are not encumbered by outdated technology or fragmented acquisitions, which enhances their ability to deliver a more integrated and effective product experience.
Despite reaching unicorn status, Upwind aims to make notable strides towards becoming a public company, a target that traditionally requires a valuation of at least $5 billion alongside significant annual revenues. A review of the 2025 cybersecurity stock market performance reveals that companies within the $1.1 billion to $14.9 billion range experienced stock declines, casting uncertainty over upward trajectories for companies like Upwind.
As Upwind navigates its path forward, it faces the challenge of distinguishing itself as a true platform rather than merely offering a collection of features. Its forthcoming developments will indicate whether it can emerge as a leader in the competitive landscape of cloud security.
