Chinese group backs AngelList’s $400 mln seed fund

AngelList has attracted additional institutional capital to its site, announcing a $400 million seed fund backed by Chinese private equity investor CSC Group.

blog post unveiling the arrangement said the fund, called CSC Upshot, will primarily invest through syndicates on the site. AngelList has previously attracted institutional capital through its $25 million Maiden Lane and other funds. Maiden Lane is backed by Top Tier Capital Partners, among other LPs.

The new fund, managed by General Partners Huoy-Ming Yeh and Veronica Wu, is billed as the largest seed fund ever raised. In any event, it will enable syndicates to make larger, faster investments in early-stage startups and follow-on rounds, according to the blog post.

AngelList co-founder Naval Ravikant told The Wall Street Journal he expects the money to be distributed slowly so as to not overwhelm the site, with about $20 million invested in the first year and up to $50 million in subsequent years. All together, the fund could invest in more than 1,000 startups, he said.

The CSC Group is also known as the China Science & Merchants Investment Management Group. AngelList syndicates will have the freedom to accept or decline capital from CSC Upshot.

At present, AngelList hosts 165 syndicates on its site that together have dispersed $205 million to 650 startups, including Shyp, Sprig and Luxe, among others.

Also, AngelList unveiled AngelList SPV, a program to allow investors on the site to raise special purpose vehicles for pro rata and later-stage investments.

SPVs have already been used to invest $35 million in 19 companies, according to the blog post. AngelList does not collect carry on the funds.