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Chinese investment group launches £500m London tech start-up fund

Cocoon Networks, the Chinese technology and investment firm, is launching a £500m venture capital fund in London to invest in UK and European tech startups.

The fund will target a range of sectors including fintech, biotech and medical devices. It will also look to take advantage of the UK’s creative tech expertise and focus on products and services who show promise for potential future growth in China.

The firm’s investment push is backed by China Equity Group, one of the first investors in Baidu, and cloud computing and biotech investment specialists Hanxin Capital.

Founder and Chief Executive Officer of Cocoon Networks, John Zai, said: “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.”

It is set to be a record year for investment by Chinese companies in London; in the last nine months alone 28 Chinese companies have pledged to set up in the capital in deals worth £23m. London and Partners, the Mayor of London’s promotional and economic development company, expects this figure to rise to 40 by the end of March.

Gordon Innes, Chief Executive Officer of London & Partners, reacted positively to the news saying: “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.”

As part of its pledge to invest in London’s thriving technology sector, Cocoon Networks has also announced it is setting up the city’s biggest incubator space in partnership with University College London. The incubator, which will offer accelerator programmes and co-working spaces, is located in Tech City and will see Cocoon working with some of the capital’s biggest universities to attract the best tech talent.