Privacy-preserving computation and data-circulation leader **Huakong Qingjiao** closes RMB 500 million Series B round
Accelerate the development of data-factor circulation infrastructure.
Recently, Huakong Qingjiao Information Technology (Beijing) Co., Ltd. ("Huakong Qingjiao" or "the company") announced the completion of a 500 million yuan Series B funding round. Returning investor Lenovo Capital and Incubator Group continued its investment, joined by Zhongguancun Science City, OPPO, Xunce Technology, CICC, Puxin Capital (a subsidiary of SPD Bank), China Renaissance, Langmafeng Venture Capital, and Tongchuang Weiyue. The company's post-money valuation exceeds 4 billion yuan, making it a domestic leader in privacy-preserving computation and data circulation technology. Gaorong Ventures led Huakong Qingjiao's seed round in 2018 and participated in subsequent rounds.
Huakong Qingjiao was founded in June 2018 by Tsinghua University through the commercialization of research by Academician Andrew Yao and Professor Xu Wei. The company focuses on researching, developing, building, and operating privacy-preserving computation and data circulation technologies, standards, and infrastructure based on multi-party secure computation and related theories. Former Goldman Sachs global partner Zhang Xudong serves as chairman and CEO; Professor Xu Wei of the Institute for Interdisciplinary Information Sciences, Tsinghua University, serves as chief scientist; and numerous graduates of Tsinghua's Yao Class form the backbone of the R&D team.
Advancing Data Circulation Infrastructure
Since its founding, Huakong Qingjiao has committed itself to advancing data circulation infrastructure. It has participated in the formulation of more than 30 industry standards, including the Multi-Party Secure Computation Financial Application Technical Specification. The company initiated and participated in the construction and implementation of multiple government data sharing and open platforms and data factor market infrastructure projects, including the Beijing International Big Data Exchange. It is currently the only company to have moved beyond plaintext data trading methods and put "new" data trading models and platforms into practice, accumulating unique experience in the construction and operation of "new" data trading platforms.
At the same time, Huakong Qingjiao is also the only domestic company to have successfully deployed and operated an enterprise-grade multi-party secure computation platform production system at a major commercial bank. In addition, the company is actively working to promote interoperability among various data circulation and fusion technology platforms, striving to serve the cultivation and development of China's data factor market.
Defining a New Track for Data Factor Circulation, Empowering a Trillion-Yuan Industry
With the rapid advancement of big data and artificial intelligence technologies, innovation based on data factors has become a new engine driving the development of human civilization. IDC data shows that global data volume reached 41 zettabytes in 2019 and will hit 175 zettabytes by 2025, maintaining exponential growth. China's data volume accounts for nearly one-third of the global total and continues to expand. It is projected that the exponential growth of data factors, combined with orderly circulation, will generate 10 trillion yuan in incremental GDP for China by 2025.
With enormous value comes enormous responsibility. With the introduction of the Data Security Law and the Personal Information Protection Law, promoting the lawful and compliant use of data factors has become a societal consensus. Huakong Qingjiao was the first to propose and engineer the implementation of "data available but not visible, controllable and measurable in use," putting forward a "new data perspective" and a "new data security perspective" that emphasizes the need to regulate the purposes and methods of data use during circulation and fusion. This has defined an entirely new field and track for data factor circulation.
Continuously Practicing the New Data Security Perspective
Zhang Xudong noted that the enormous potential economic value and social energy of data make it increasingly clear that data is not merely a resource but also a responsibility. Data must be used properly to benefit the people and prevent massive "negative externalities" from abuse. The flip side of data's tremendous value is often its little-known vulnerability and risk.
Under the major trend of data factor circulation, data use security is at the core of the new data security perspective — traditional data security has focused primarily on protecting control over data and preventing it from being copied and used by others. As a result, previous data classification and grading efforts, along with related risk assessments and controls, tended to focus only on the leakage risk of individual data items.
In the era of data factor circulation, multi-party, multi-type data fusion computing is like operating a "data chemical plant." When multiple raw materials (data) undergo a "chemical reaction" (fusion computing) according to certain formulas and conditions (algorithms), the results may cause harm or generate significant risks to individuals, society, and the nation. "Data available but not visible" only prevents information leakage during data circulation; "controllable and measurable in use," along with "regulatable" capabilities, are what effectively manage the negative externality risks of data fusion computing results and ensure that data is used safely, lawfully, and compliantly.
Therefore, there is an urgent need to establish mechanisms and requirements for assessing and managing the results and consequences of "data chemical reactions," clarifying the "responsibilities, rights, and interests" of data circulation and use. The capability of "controllable and measurable in use" is the most effective means of regulating the purposes and methods of data use, serving as the infrastructure for data use compliance and regulation, and providing effective safeguards for implementing the Data Security Law and the Personal Information Protection Law.
Supporting the regulation and oversight of data factor circulation is the fundamental starting point for Huakong Qingjiao's construction of data circulation infrastructure. The company stated that data comes from the people, and the fundamental purpose of unlocking data factor value is to benefit the people — this is the original aspiration and mission of Huakong Qingjiao as a Tsinghua University technology spin-off.
Bin Yue, founding partner of Gaorong Ventures, said, "We are very optimistic about the application of privacy-preserving computation across multiple industries. We also believe that Huakong Qingjiao's globally leading proprietary technology, top-tier team, and strong academic backing can bring unique value to this field. Under the guidance of the new data security perspective, we also see Huakong Qingjiao's commitment and sense of responsibility regarding national and societal data security, and look forward to its continued contributions to the nation's data circulation network infrastructure."
