Chinese Venture Capital Cocoon Networks Open a $700M Fund in London

By Staff Writer

Jan 21, 2016 02:03 AM EST

Cocoon Networks is a London-based Chinese technology and investment group. The group is backed by China Equity Group and Hanxin Capital along with Transfer Wise. Recently Cocoon Networks has setup a £500 ($700) million venture capital fund to invest in European tech startup.

PE Hub reported that Cocoon Network's startup fund will look to invest in tech companies across a wide range of sectors. That includes fintech, biotech, medical devices and the UK's creative tech industries, like fashion-tech. For companies who seek expansion to China, Cocoon Networks provide assistance in understanding Chinese legislation and common business practice in China.

Cocoon Networks was established by three partners: China Equity Group and Hanxin Capital and Transfer Wise. China Equity Group is the first investor of Baidu, the China's biggest search engine which equal to Google. The firm is specializing in angel investment, high growth, mergers and acquisitions investments.

The other partner, Hanxin Capital Equity Investment Management Co., Ltd. is the principal investment firm. The Wuhan-based firm is specializing in start-ups, specialises in cloud computing and bio tech investments.

Coocon Networks has also in partnership with University College London, as Business Wire reported. They both are partnering to setup the biggest incubator space in London to provide the best environment for growing tech startups.

In regard to the fund, John Zai, Founder and CEO, Cocoon Networks said, "The fund will provide capital to help the development of some excellent technology and innovative projects in London and the UK." The fund also provide a service to company who want to find opportunity in China and Chinese investor in Europe, "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."

Furthermore, Zai told Tech Crunch the reason why Cocoon Networks choose England and Europe for its investment fund, "We believe that in the past 15 years China has been very focused on the US market, but not so much on early stage investments in the UK."

Meanwhile, Gordon Innes, CEO London & Partners appreciated the fund, "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." He also welcomed investor as well, "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."

Cocoon Networks has selected England and Europe for its venture capital fund. Recently, London has been a hotspot for tech startup, as last year's venture capital funding in tech sectors raise a record of $3.6 billion.

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