Data security startup DataCloak has closed its Series A worth $13 million, the company announced on Tuesday.
Why it matters: China hopes to create a cybersecurity industry worth RMB 200 billion ($28.7 billion) by 2025, with a handful of domestic companies taking on their international counterparts.
- Enterprises are putting increased focus on addressing internal data leaks rather than just threats from outside their corporate networks.
- In addition, China’s 2017 Cybersecurity Law and this year’s Encryption Law governing cryptography have forced companies to improve their security. This has created a market for cybersecurity companies that help other firms with compliance.
“We will continue to increase investment in research and development, consolidate the core advantages of independent intellectual property rights, and provide customers with better products and innovation.”
—Liu Chao, DataCloak CEO, in a statement
Details: DataCloak’s latest round of funding was led by Jeneration Capital, Co-Stone Asset Management, and Green Pine Capital Partners. Previous investor Matrix Partners China also took part.
- DataCloak will primarily use the proceeds for continued research and development as well as market expansion, the company said in a statement.
- DataCloak provides services that allow employees of an enterprises to securely access corporate data wherever they are in the world by combining multiple technologies that allow for increased control over who can access sensitive data.
- The company last raised in 2018 with a $5 million Pre-A led by Matrix Partners China.
Context: Founded in 2018 by a former senior senior director and engineers from Baidu, Shenzhen-based Datacloak employs “zero-trust” computing, in which users are not trusted only because they have access to a corporate network.
- The company provides a means for secure communications between a device and company network and allows for configurable security levels for every user on a network.
- Data leaks are an all too common occurrence in China in spite of ever-stricter laws aimed at minimizing potential damage.