China Equity Group and Hanxin Capital recently announced a $713 million fund (Cocoon Networks) to invest in European start-ups. In addition, they will be partnering with the University of London to establish an incubator to help start-ups expand into the Chinese market. According to the CEO of Cocoon, Jack Zai, the Europe shift is due in part to disillusionment with some aspects of stateside investment, including competitive rounds and high valuations.
