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Singapore’s Temasek leads investment in Chinese start-up Well-Link

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In only three years, Beijing-based Well-Link Technologies has built a business on real-time cloud rendering, including helping miHoYo launch the cloud version of the hit game Genshin Impact.

Ina Fassbender | Afp | Getty Images

BEIJING — Singapore state investment firm Temasek is leading a $40 million funding round in a Chinese startup despite a dry spell of deals within the country.

The startup, Well-Link Technologies, counts Chinese tech company Xiaomi and Chinese gaming star miHoYo as investors, based on business database Tianyancha.

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The $40 million deal announced Monday is an early-stage, or B2 round, led by Temasek and includes existing shareholders Future Capital and VGC.

Temasek confirmed the deal in an email.

The Singapore firm’s publicly disclosed exposure to China has declined during the last two years, from 29% in 2020 to 22% as of this March. As of last week, Temasek had only participated in eight China financing deals, down from 41 last 12 months, based on Dealogic.

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In only three years, Beijing-based Well-Link Technologies has built a business on real-time cloud rendering, including helping miHoYo launch the cloud version of the hit game Genshin Impact.

Cloud gaming requires fast processing speed because it relies on distant servers and an online connection to supply people a smooth gaming experience with only a small file download.

For instance, the cloud version of Genshin Impact is just 78.5 megabytes on Apple’s App Store in China, versus the exponentially larger 3.7 gigabytes for the non-cloud version.

Soaring revenue

Well-Link claims its revenue for every of the last two years has grown by a whopping 400% or more, putting the corporate on course for revenue of several hundred million yuan — the equivalent of tens of thousands and thousands of U.S. dollars.

CEO Guo Jianjun told reporters the valuation that Temasek offered wasn’t the very best one the startup received. But he said the most recent financing round is a component of the corporate’s plans to expand its business overseas.

It was difficult to boost funds throughout the pandemic, and the startup still has a variety of money, Guo said. But he added that he’s confident in Well-Link’s future development and desires to stick with its fundraising plan.

Certainly one of Well-Link’s next steps is encouraging more developers to create games that originate within the cloud.

The corporate can be exploring how its real-time cloud rendering tech may also help with the event of virtual reality and other technologies of the longer term.

On the difficulty of regulation, Guo said his startup faces little policy uncertainty, and noted that Well-Link is a not a consumer-facing company.

“From the time of this company’s founding in 2019, our requirement was that we must do compliant, reasonable and legal things,” Guo said in Mandarin, based on a CNBC translation.

“Really excellent and good firms and good content will proceed to get [approvals] or support,” he said. “So all we’d like to do is serve the nice content that is in accordance with policy requirements.”

China’s gaming industry has come under increased regulatory scrutiny within the last 18 months, with tighter restrictions on how long minors can play. Regulators have also been slow to approve many latest games by industry giants NetEase and Tencent, although the 2 firms each received approvals for titles this month.

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