The UK and China High Tech fund was officially launched by Cocoon Networks, a Chinese investment firm, with backing from private equity houses China Equity Group and Hanxin Capital. The fund will be looking for UK start-ups to import back to China.
“This is a great opportunity to work together,” said John Zai, founder and chief executive of Cocoon Networks. “The reason why UK and European companies cannot grow to become huge is down to the size of the market.”
“No matter how successful, how good these companies are,” he added, “they have always had a limit. But imagine if we spread this product, this service, this company to China? It could be 10 – maybe 50 – times bigger.”
The fund has showed interest in start-ups within the fin-tech and biotech sectors. It will also concentrate on the UK’s creative industries.