Chinese technology and investment group Cocoon Networks will be launching a £500m ($700m) London-based venture capital fund to invest in UK and European tech startups later this year.
Backed by China Equity Group — an investor in Baidu (China’s equivalent to Google) — and Hanxin Capital — a specialist in cloud computing and bio tech investments — Cocoon Networks will be on the lookout for companies whose products and services show promise and potential growth opportunities in the Chinese market.
Areas of potential interest by the group will include FinTech, BioTech and FashionTech startups.
“The fund will provide capital to help the development of some excellent technology and innovative projects in London and the UK. The fund and incubator programme will bring awareness for more Chinese investors to get into London’s booming technology sector. It will also help many companies grow and expand into China,” said John Zai, founder and CEO at Cocoon Networks.
The group also announced the creation of an incubator space in partnership with University College London, which recently launched a £50m fund to foster innovation among startups in the capital.
Gordon Innes, CEO at London & Partners, The Mayor of London’s promotional and economic development company, said: “This is a significant vote of confidence in the global nature of London’s tech sector and will deliver significant investment into some of the capital’s brightest and best startups.
“London is experiencing unprecedented growth in its technology sector, and there is a wealth of opportunity for entrepreneurs and investors to get a foothold in the UK and the rest of Europe,”he added.
Cocoon Networks says it will also work in conjunction with some of London’s leading universities to attract talent, offer accelerator programmes and co-working spaces.