Adapt Cocoon Equity LLP is a joint venture between the Adapt Low Carbon Group at the University of East Anglia and Cocoon Networks, Europe’s largest start-up ecosystem backed by Chinese capital. The joint venture is set up to operate the Mulberry Green Fund, a £20m venture capital fund specializing in investing in UK-based Green-tech companies with market potential in China.
China’s rapid economic growth and industrialisation has led to significant environmental impacts and China is currently considered one of the most polluted countries in the world. It is estimated that pollution and related issues are costing the Chinese economy up to 10% of GDP every year. As a result, the Chinese government has over the last decade made environmental protection and remediation priority areas as detailed in the 13th Five-Year-Plan and the “Made in China 2025” strategy.
Simultaneously, Chinese companies are trying to reduce costs and improve competitiveness by increasing energy efficiency, reducing resource wastage, increasing the re-use and recycling of resources and complying with international environmental standards. Consequently, the market for efficient and green technologies has grown rapidly in recent years. China’s key Green-tech sectors currently account for around 8% of China’s GDP which stood at $11.4 trillion in 2016 and is targeted to contribute 15% by 2020.
Mulberry Green seeks to capitalise on Britain’s world leading position in research and innovation by investing in green technologies to be deployed in the Chinese market. Portfolio companies can utilise highly skilled researchers, workforce and innovation support structures available in the UK whilst simultaneously grow value by scaling in the Chinese market.
Mulberry Green’s focus sectors include: Agriculture and food production, energy generation and distribution, energy efficiency, green construction, circular economy & waste management, water & soil management, alternative materials, alternative fuels and air pollution.
The Mulberry Green Fund is anticipated to start investing late 2017, early 2018.