A Chinese technology and investment group is launching a £500 million fund in London to target European tech start-ups.
Cocoon Networks will invest in tech companies in sectors including fintech, biotech, medical devices and UK creative technology industries.
It will also provide assistance to companies that wish to expand into China, including advice on legislation and the practical requirements of operating there.
In addition, Cocoon Networks is partnering with University College London to set up the capital’s biggest incubator space. As well as helping to build technology companies, the space will work with some of London’s universities to offer accelerator programmes and co-working spaces.
The 70,000 square foot building is located close to Moorgate, Liverpool Street and Old Street tube stations, in London’s Tech City.
The launch followed the release of figures by London & Partners, the Mayor of London’s promotional company, revealing that in the last nine months 28 Chinese companies worth £23 million have pledged to set up in London.
That figure is expected to rise to nearer 40 by the end of March 2016.
John Zai, Founder and CEO, Cocoon Networks said: "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."
Gordon Innes, CEO 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."