Former Anker CTO to Reap Rewards of 8-Year Startup with Upcoming IPO: A $4 Billion Business Behind a Single Light Strip | Hardcore Krypton Analysis

Author: Ou Xue

Editor: Yuan Silai

In 2017, when Anker was preparing for its IPO, Wu Wenlong, the core member and CTO, chose to leave and start his own business. Moreover, he decided to enter the extremely traditional lighting industry.

It's difficult to trace the circumstances of Wu Wenlong's decision, as he never accepts interviews or makes public statements. The only thing we can see is that Govee (Zhiyan Technology), founded by him, achieved a leap from zero to 4 billion yuan in annual revenue within seven years with a "breathing" RGB light strip.

In May 2025, Zhiyan Technology officially launched the listing guidance, and the guidance institution is CICC.

Interestingly, Anker Innovations, his former employer, didn't regard it as a competitor. Instead, in 2021, it made a strategic investment of 40 million yuan, casting a crucial vote of confidence in the entrepreneurial journey of this "departed executive." An unspoken fact in the industry is that the close relationship between Wu Wenlong and Anker is the key for Zhiyan Technology to quickly gain momentum on Amazon.

Looking back, Wu Wenlong has a very sharp sense. Although China accounts for 90% of the world's LED lighting production, and traditional enterprises like Opple and NVC Lighting are also expanding overseas, their products are rarely linked to IoT. Moreover, in terms of building a brand on Amazon, Wu Wenlong has the capital and experience that ordinary startups can hardly match. In the niche market of smart lighting, Zhiyan Technology has had few competitors from the very beginning.

Leaving Anker and Getting Investment from Anker

Since its establishment, Zhiyan Technology, a startup, has been in the spotlight because of its relationship with Anker.

Public information shows that Wu Wenlong directly held 5.6153% of the company's equity before Anker Innovations' IPO. Even after it was diluted to 5.05% after the listing, he remained one of the core shareholders.

Wu Wenlong seemed to have the intention to "go solo" early on. Only half a year after Anker Innovations submitted its IPO application for the Growth Enterprise Market, Wu Wenlong left. In January 2017, he officially founded Zhiyan Technology, entering the RGB lighting market mainly focused on decorative lights and establishing the first brand, Govee.

Different from other entrepreneurs who left the Anker system, since Wu Wenlong is one of the core founders and holds stocks in a pre - listed company, his entrepreneurial journey is escorted by substantial capital.

Since Anker Innovations went public in August 2020, Wu Wenlong has carried out two rounds of share sales in 2021 and 2023, cashing out a total of about 247 million yuan.

After these two rounds of operations, his shareholding ratio gradually decreased from 5.05% at the time of the IPO to 4.25%. According to the latest data from Aiqicha, as of the publicity period on March 31, 2025, Wu Wenlong's shareholding ratio in Anker Innovations has dropped to 4.19%, but he is still the fourth - largest shareholder.

(The latest change in Wu Wenlong's shareholding in Anker Innovations / Source: Aiqicha)

What's more eye - catching is that Anker Innovations is obviously supporting this "departed executive."

In March 2021, Anker Innovations announced that it would make a strategic capital increase of 40 million yuan to Zhiyan Technology with its own funds, obtaining 1.257% of the latter's equity.

Interestingly, Anker Innovations clearly stated in the announcement that this move was intended to "further expand the company's business layout, improve the overall quality of the company's investment projects, enhance the company's comprehensive competitiveness, and achieve the company's strategic goals for industrial development."

Zhiyan Technology developed extremely rapidly in its early stage. In 2018, Govee launched its first music - reactive color - changing light strip. By 2019, the investment announcement of Anker Innovations at that time showed that the annual revenue of Govee's parent company had reached 422 million yuan. According to other media reports, Govee's annual sales in 2020 exceeded 200 million US dollars (equivalent to 1.4 billion yuan).

Actually, going global was not a popular trend at that time. Moreover, according to industry insiders, many investors generally believed that compared with other smart hardware categories, the technical threshold of the lighting industry was relatively low, and Govee's annual revenue and profit level of 200 million US dollars at that time did not meet the investors' expectations.

Therefore, in the early stage, Zhiyan Technology only caught the eye of Jiupai Capital. Information from Aiqicha shows that Zhiyan Technology received angel and seed - round investments from Jiupai Capital in 2020.

However, due to its Anker background, some capitals were still willing to invest. In the same year, Zhiyan Technology received a Pre - A round of investment from Tongchuang Weiye. In 2021, while Anker Innovations made an investment, IDG Capital, Hillhouse Capital, and Zhongding Capital also joined in.

Zhiyan Technology doesn't really need investors. According to Leifeng.com, in 2024, Zhiyan Technology achieved a revenue of 4 billion yuan, a profit of over 400 million yuan, and had 600 million yuan in cash on the books, with abundant cash flow. In terms of channels, Govee's online revenue accounts for more than half, and offline revenue accounts for 20 - 30%. It has fully entered all supermarkets.

It has become a company that investors can't follow up with.

Playing a "Smart Ecosystem" Game with a Light Strip

In the smart home market, it's rare for a company to become a top brand on Amazon by selling light strips.

According to Statista data, in 2017, the global smart home market reached 31.2 billion US dollars, with a compound annual growth rate of over 25%, especially in North America.

At that time, players in the market were competing for essential products like smart speakers and sweeping robots, while the light strip field with a relatively low technical threshold was easily overlooked.

"At first, everyone thought there was no room for light strips, but Govee's product and channel capabilities are really strong," an industry insider told Yingke.

Govee is very good at creating differentiation. In 2018, Govee launched its first music - reactive color - changing light strip, the H601X series. Nearly three years after its launch, Govee's light strip once ranked first in the global sales list of Amazon Alexa smart LED light strips. It's worth noting that Govee belongs to the IoT category, not traditional lighting.

Overall, Zhiyan Technology knows very well how to extend the "smart ecosystem" system. Currently, Zhiyan Technology has two product lines. The Govee product line covers TV lights, smart lights, projection lights, and smart home appliances, suitable for scenarios such as party venues and bedrooms. In addition, the company entered the smart small home appliance market in 2021 and launched the GoveeLife series, including portable countertop ice makers, smart humidifiers, etc.

In terms of pricing, the price range of Govee's ambient lighting products is between 20 and 490 US dollars. On the basis of traditional ambient decorative lights, Govee continuously innovates, integrates AI technology, intelligent control, and sensor connection, and has obtained more than 870 patents. It supports functions such as 16 million - color adjustment and music rhythm, emphasizing interactivity and personalization.

Meanwhile, the Govee Home App developed by Govee can cooperate with Siri, Google Assistant, Homey, etc. According to the official website data, as of December 2024, the app has been used by more than 30 million users.

"Although ambient lights are not essential, consumers in Europe and the United States have a strong festival culture and a high demand for home decoration," an industry observer told Yingke. The precise market positioning and strong product innovation ability have made Govee quickly become a favorite among overseas consumers.

An industry insider told Yingke that Zhiyan Technology has also inherited Anker Innovations' gene of creating hit products in channel operation, adopting an expansion path of "starting with Amazon and then expanding to multiple channels." After establishing a foothold on Amazon, it gradually expanded to eBay, Walmart, and its own independent website.

On Amazon, its core battlefield, Zhiyan Technology has delivered an outstanding report card. According to BrandYiguan data, its Amazon store has had a growth rate of over 300% for three consecutive years. The monthly sales of a single light strip exceeded 12 million US dollars, and many products have remained on the Best Seller list.

In addition, Zhiyan Technology has simultaneously deployed on e - commerce platforms such as eBay, Walmart, BestBuy, and TikTok, and operates an independent website for its own brand, turning the private domain into a user - co - created community. According to SimilarWeb data, the monthly average traffic of this independent website is about 1.6 million.

(Govee's independent website community)

Govee also knows well the way of co - branding marketing. It is reported that Govee cooperated with "Dune 2" on a smart TV backlight strip, bringing the movie scenes into the living room. According to data from multiple media, after the product was launched in November 2023, the total sales exceeded 33,000 orders by May 2024, achieving sales of 3.58 million US dollars and strongly entering the top ten of Amazon's LED light strip category.

Govee can be said to be one of the most successful cross - border brands in recent years. Its success story is hard to replicate. However, Govee also indicates that there are still many unmet niche demands in the overseas market. Even if a company can't grow into a top seller like Govee in the end, there are still untapped resources in the niche market for small and medium - sized companies.