Old Street roundabout

Chinese tech and investment group, Cocoon Networks, is launching a £500 million London-based venture capital fund aimed at investing UK and European tech startups.

Cocooon Networks, which has the backing of China Equity Group, one of the first investors in China's answer to Google, will look to invest in tech companies whose products and services show promise and potential for growth in the Chinese market.

The fund will look to invest in tech companies across a wide range of sectors, including fintech, biotech, medical devices. Companies looking to expand into China will also be offered assistance in navigating Chinese laws and practical help about doing business there.

As part of a wider investment, Cacoon Networks will also partnership with University College London is set up the capital's biggest incubator space, in order to provide the best environment for growing tech startups.

John Zai, founder and CEO of 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 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 of 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 foothol in the UK and the rest of Europe."