Date
30 March 2017
Naval Ravikant, founder of AngelList, a US venture capital website for startups, finds a huge backer from China. Photo: WSJ
Naval Ravikant, founder of AngelList, a US venture capital website for startups, finds a huge backer from China. Photo: WSJ

Coming soon from China: US$400 mln bonanza for US startups

AngelList, a US crowdfunding website for early-stage startups, has acquired a US$400 million funding from China’s CSC Venture Capital.

The amount could be the largest-ever single investment by a Chinese private-equity firm in a US fund, the Wall Street Journal reported.

Naval Ravikant, founder of the website, said the money will be given to startups slowly so as not to overwhelm the market.

In the first year, AngelList will disperse about US$20 million of the money, then increase it to US$50 million a year in subsequent years.

CSC Venture Capital is the US arm of China Science & Merchants Investment Management Group, also known as CSC Group.

CSC has more than 80 billion yuan (US$12.6 billion) under management, said Veronica Wu, president of its US arm.

CSC founder Xiangshuang Shan aims to turn his firm into the largest private-equity firm in the world, according to Wu. The firm went public in March on the Chinese stock market, where it raised almost US$2 billion.

The group wants to offer Chinese investors an alternative venue for their capital, allowing them to diversify into startups in the United States.

So with AngelList as the vehicle for this money, a massive wave of overseas cash is headed for US startups, the newspaper said.

Previously, AngelList had raised US$205 million from various sources, including US$43 million from institutional investors, the report said.

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RA/CG

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