Cocoon Networks, a Chinese tech and investment group, is set to launch a London-based venture capital fund of £500 million ($700 million) later this year. The fund will be invested in European and UK-based tech startups.
The initiative has received backing from China Equity Group and Hanxin Capital. Cocoon Networks will be seeking more firms whose products and services are potentially poised to facilitate Chinese market’s growth. The group’s target is to invest in various sectors, especially FinTech, FashionTech and BioTech startups.
The group is also partnering with University College London to create an incubator space. The university recently initiated a £50 million fund aimed at boosting startup innovations in London. They are further planning to work with other top universities in London so as to attract the best talent, provide co-working spaces and accelerator programmes.
John Zai, CEO and founder of Cocoon Networks, said that the fund will offer financial support for the development of exceptional and innovative technology ventures in the UK and London. He added that the incubator programme together with the fund will create more awareness among Chinese investors, increasing their involvement in London’s booming tech sector. It will also facilitate the growth and expansion of many companies into the Chinese market.
Gordon Innes, CEO of London & Partners and Mayor of the promotional & economic development company in London, said that the move is a significant demonstration of confidence in the global tech sector of London. He is positive that the fund will provide significant investments into some of the brightest and best startups in London.
He also added that London is currently experiencing remarkable growth in the technology sector. In addition, there is a wide range of opportunities for both investors and entrepreneurs in the UK and European market as a whole. Cocoon Networks will work with leading London’s universities to provide accelerator programs, attract talent and offer co-working spaces.