Cloud computing startup bags $40 million in angel financing round

Jiuzhu Network Technology, a cloud computing and networking startup, has raised $40 million in an angel financing round on the back of growing demand for remote work, per 36Kr.

Jiuzhu Network Technology is an enterprise software company that offers cloud storage, computing, and remote access services — a mix of iCloud and Amazon Web Services.

• The funds will be used to build out ToDesk, its remote desktop services subsidiary.
• Financiers include Banyan Tree Capital, Cloud Nine Capital, and the funding arm of social media platform JOYY.

Jiuzhu blossomed during the pandemic as remote work became normalized. Employees connect to office computers from the comfort of their laptops, allowing for an easier work-at-home experience.

• China’s market for cloud computing services is about 5–6 billion yuan ($900 million).
• ToDesk has so far received 30 million installations since its launch last July.

Founded in July 2021 by Jason Hu (胡建强 Hú Jiànqiáng), a software engineer who previously worked at Microsoft, Alibaba, and JOYY.

• In 2014, Hu co-founded livestreaming giant BIGO Technology with JOYY founder David Li (李学凌 Lǐ Xuélíng).
• In 2020, BIGO brought in almost $2 billion in revenue (in Chinese).

The takeaway: Startups like Jiuzhu, which can accelerate productivity in a number of industries, will enjoy strategic tailwinds as the government tries to promote greater industrial and manufacturing output. Meanwhile, gaming and social media companies will face significant headwinds.