Jeneration leads round for China data security provider

Other investors include Co-Stone Asset Management, Green Pine Capital Partners and Matrix Partners China. The company received a $5 million Pre-Series A in 2018 led by Matrix.

Founded in 2018 by a former senior director from Baidu, DataCloak’s first product, DACS, is used by customers such as Tongcheng-Elong and Youzu Interactive. The company helps corporates set up secure, isolated workspaces within employees’ computers and smart phones. Information flows can be controlled and later audited, while an artificial intelligence-driven detection function is able to identify abnormal behavior.

Data security has emerged as a prominent theme in technology investment. China’s Ministry of Industry & Information Technology estimates the domestic cybersecurity industry will be worth more than RMB200 billion by 2025. In September, it proposed cultivating a group of companies that will achieve combined revenues in excess of RMB2 billion during this period. 

For many years, the standard government approach to cybersecurity has been physical separation - one set of devices for internal communication and another for internet access. This served as a prototype for the zero-trust concept, whereby vendors use virtual separation to provide convenience and security at the same time. Google was the first company to incorporate zero-trust into its cybersecurity architecture. The likes of Cisco, Microsoft, Symantec have all followed suit.

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• Topics
• Greater China
• Technology
• Early-stage
• China
• TMT
• Matrix Partners
• Green Pine Capital Partners
• Jeneration Capital