Chinese cloud-rendering startup, Well-Link Technologies, has reportedly raised $40 million in an early-stage, or B2, funding round, led by the Singapore state investment company, Temasek.
The Chinese startup, which boasts of backing from Chinese gaming giant, miHoYo, and Chinese tech giant, Xiaomi, also saw the participation of existing shareholders CDH Venture and Growth Capital, and Future Capital in its B2.
For the record, Temasek’s publicly disclosed exposure to China has fallen over the previous two years, going from 29% in 2020 to approximately 22% as of March this year. While it participated in 41 financing deals in China last year, this year Temasek only took part in eight as of last week.
Well-Link Technologies, based in Beijing, offers real-time cloud rendering services and has helped miHoYo launch the cloud version of its video game, Genshin Impact, as well. With cloud rendering, computations necessary for creating images, such as movies and animations, can be done via multiple cloud servers instead of a single computer.
Cloud gaming needs fast processing speeds as it depends on remote servers along with an internet connection to provide a smooth gaming experience with a simple small file download.
The startup claims that its revenue each of the previous two years has grown by an astounding 400% or more, putting Well-Link on track for hundreds of millions of yuan, or tens of millions of US dollars, in revenue.
Guo Jianjun, CEO of Well-Link Technologies, stated that the capital raised will be used for the company’s overseas expansion.
One of the startup’s next moves will be to encourage more developers to create games originating in the cloud. The firm would also look into ways its tech can aid the development of future technologies, such as virtual reality.
With regards to the issue of regulation in the country’s gaming industry, Guo stated that Well-Link does not face much policy uncertainty and that it is not a consumer-facing business.
.added that good firms and good content will continue receiving support or approvals, hence the startup needs to ensure that good content, which adheres to policy requirements, is delivered.
Source credit: https://www.cnbc.com/2022/09/26/singapores-temasek-leads-investment-in-chinese-start-up-well-link.html