Having Finalized Its $13M Series-A Funding, DataCloak Now Sets Its Focus on Zero Trust Data Security Technology
Zero Trust data security startup DataCloak recently announced that they had raised $13 million via Series-A funding. This round of financing was led by Jeneration Capital, and was closely followed by Co-Stone and Green Pine Capital as the co-investors. Long-standing shareholder MatrixPartners China increased its claim on the company’s stock. The subscription amount far exceeded the expectation. The funds raised, according to DataCloak, will be primarily allocated for higher spending on R&D and market development. With sustainable in-depth efforts on Zero Trust technologies and solutions, the firm takes aim at rendering top-of-the-line data security services to enterprises.
Data security is deemed as the most popular and crucial cybersecurity sub-sector at the moment. Constituting an important aspect in shifting from defense against external attack to business security, it forms the core and basis of enterprise operation with huge market potential. In the Guidelines on Promoting Development of Cybersecurity Industry (Exposure Draft) promulgated by the Ministry of Industry and Information Technology (MIIT) on September 27th, 2019, a plan has been set to complete the cultivation of a batch of cybersecurity firms by 2025, which generate over ¥2 billion of operating income and form an industry worth in excess of ¥200 billion, while also giving birth to a handful of globally competitive “backbone” cybersecurity enterprises. Besides, breakthroughs will be made in key cybersecurity technologies to push it into one of the five key national agenda. Furthermore, enterprises will be inspired to probe into dynamic defense, trusted computing, Zero Trust security and other new cybersecurity ideas and structures. Advancing with the times, DataCloak rolls out its Zero Trust data security products. Through deepening the integration of multiple leading security technologies, e.g., trusted computing, SDP, advanced cryptography, or AI-driven security, the firm is dedicated to safeguarding worldwide no-perimeter access of corporate data via state-of-the-art solutions for securing enterprise endpoint collaboration, hybrid cloud data and IoT data.
With gratitude, DataCloak Founder and CEO, Liu Chao, said
"We appreciate the recognition and support of investors. We are grateful to have learned and contemplated from the round of financing. We went deep in discussion with investors on the strategic orientation, strategic path, strategic implementation, etc., instead of the short-term goals of IPO monetization in years to come. What we've arrived from discussion will be of great avail to practical operation in the future. Morphologically, our products stem from the security-as-an-infrastructure philosophy and integrate Artificial Intelligence (AI), Zero Trust and other cutting-edge technologies, so that we can play a conducive part in building next-generation network security architecture for enterprises by addressing problems in reality. Our R&D spending will continuously rise in the future, so as to consolidate our core superiority in proprietary intellectual property rights (IPR). By unveiling better products and creating greater value for clients, we will reassure them with secure data access, anytime and anywhere."
With regards to this round of financing, Jeneration Capital Partner, Zhang Ziquan, said
"Against the backdrop of explosive growth of data worldwide, data security is confronted with a plurality of more complicated challenges, regardless of states, enterprises or individuals. In this respect, data security technology and innovation is apparently a promising market in China. Relying on its deep-seated background in the industry and technology, DataCloak proudly unveiled DACS — the product of the globally advanced Zero Trust security philosophy and the company’s domestically-accumulated practical experience thus far — within less than 18 months after its founding. Targeting the pain points of enterprises, DACS has been applied to multiple scenarios with significant success. It's our privilege to grow alongside DataCloak. We hope that they can go the extra mile in introducing relevant practice and innovation to security solutions in the future."
Co-Stone Partner, Huang Yiqun, gave affirmative comments to DataCloak as well, commenting
"The generalization of network arising out of cloud computing, AI and 5G casts a cloud over protection of core data assets of enterprises. Enterprises are facing some critical problems of urgency, e.g., privacy and data protection, core IPRs (codes, design drawings, and technical documents), management data, client privacy, freezing and segregation of digital assets of incumbent and separated employees, or subcontracting and outsourcing data leak prevention. To address these problems, DataCloak pioneers nationwide in implementing the Zero Trust security architecture. Based on its solid grasp of underlying technologies and well-organized team, it helps enterprises resolve entire-life-cycle dynamic data security problems. We're honored to keep enabling the firm amidst its business evolution."
Dr. Yuan Hongwei from Green Pine Capital deems DataCloak as a promising company, and stated
"Green Pine Angel Fund ascribes great importance to the penetration of AI and big data in the industrial sector, among which, enterprise-level data security is a huge blue ocean market. DataCloak is China's first security technology and innovation service provider under the Zero Trust architecture. Its products act in line with BeyondCorp in the U.S. Targeting enterprise-level inside security protection of great significance, the firm guarantees data security for enterprises, where container in place of hardware forms the basis. Resolving pain points in the industry, the firm unleashes great potential on the market."
MatrixPartners China Partner, Xiong Fei, placed high expectations on DataCloak, saying
"MatrixPartners has faith in China's security market. Among other players in the market, DataCloak is a leading product and technology provider, which keeps catering to users' needs with steady efforts. Ever since we began investing in Pre-series A funding, the firm has maintained an upward business development momentum by unveiling sound and robust products. We are confident that the firm will attain long-term development and become one of the leading security service providers of new generation in the future."
DataCloak's first product DACS has been used by clients from finance, e-commerce (EC), Internet, high-end manufacturing, scientific research, and many other sectors, e.g., China Securities, Tongcheng-Elong, or Yoozoo, for securing outsourcing research and development, source code protection, call center data security, cross-regional coordination, cross-organizational coordination and other scenarios. Besides, DACS conforms to technical requirements in the IST 2.0 baseline for classified protection of cybersecurity, with regards to identity-based access control, confidential validation, dynamic perimeter protection, etc., and offers a simple and workable solution with efficiency and compliance to classified protection compliance problems of enterprises.
Originated as a notion proposed by Forrest Research in 2009, Zero Trust began to truly steal the limelight in the industry after Google published a paper on its BeyondCorp project in 2016. Speaking of which, Google is also the world's first firm that implements and deploys the Zero Trust architecture in all respects. In the international community, leading cybersecurity service providers, Cisco, Microsoft, and Symantec, to name a few, as well as many cybersecurity startups, have started making arrangements on the Zero Trust technology and its market. Since its founding, DataCloak has been relentlessly upholding and promoting the prevalence and implementation of the Zero Trust philosophy in China. Particularly as of May 2019, heated discussions on Zero Trust have circulated in the industry. Without a doubt, breakthroughs will be made in the cybersecurity-oriented Zero Trust technology. In addition, the technology will form the basis of the infrastructure for future scenarios with characteristics of digital economy and AI.
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