Based in Beijing, Well-Link Technologies has built a real-time cloud rendering business in just three years. This includes helping miHoYo launch the cloud version of their hit game Genshin Impact.
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BEIJING — Singapore’s state-owned investment firm Temasek is leading a $40 million funding round in a Chinese startup despite a slowdown in China deals.
Startup Well-Link Technologies counts Chinese tech company Xiaomi and Chinese game star miHoYo as investors, according to business database Tianyancha.
The $40 million deal, announced Monday, is an early-stage B2 round led by Temasek and includes existing shareholders Future Capital and CDH Venture and Growth Capital.
Temasek confirmed the deal via email.
The Singapore company’s reported exposure to China has been declining over the past two years, dropping from 29% in 2020 to 22% as of March this year. As of last week, Temasek participated in only eight Chinese financing deals, down from 41 last year, according to Dealogic.
Based in Beijing, Well-Link Technologies has built a real-time cloud rendering business in just three years. This includes helping miHoYo launch the cloud version of their hit game Genshin Impact. Cloud rendering uses multiple servers in the cloud instead of a single computer to perform the calculations necessary to create images such as animations and movies.
Cloud gaming relies on remote servers and internet connections to provide a smooth gaming experience with just a small file download, so fast processing speeds are required.
For example, the cloud version of Genshin Impact is just 78.5 megabytes on Apple’s App Store in China, compared to an exponentially larger 3.7 gigabytes for the non-cloud version.
Soaring revenue
Well-Link claims to be on track to achieve sales of hundreds of millions of yuan (equivalent to tens of millions of dollars), with sales growth of more than 400% over the past two years. I’m here.
CEO Guo Jianjun told reporters that the valuation offered by Temasek is not the highest the company has received. However, he said the latest funding round is part of the company’s plans to expand its operations overseas.
Guo said it is difficult to raise funds during the pandemic and startups still have a lot of money. However, he added that he is confident in the future development of his Well-Link and wants to stick with its funding plan.
One of Well-Link’s next steps is to encourage more developers to create games that originate in the cloud.
The company is also exploring how real-time cloud rendering technology can help develop virtual reality and other future technologies.
On regulatory issues, Guo said his startup faces little policy uncertainty, noting that Well-Link is not a consumer-facing company.
“From the time this company was founded in 2019, our requirement was that we must comply and do what is reasonable and lawful,” Guo said in Beijing, according to CNBC’s translation. spoke in language.
“Truly excellent and excellent companies and excellent content will continue to be acquired. [approvals] “So all we need to do is provide great content that complies with our policy requirements.”
China’s gaming industry has come under increasing regulatory scrutiny in the past 18 months as it tightens restrictions on how long minors can play. The regulator has also been slow to approve a number of new games by industry giants NetEase and Tencent, though the two companies each received title approval this month.
