Funding platform AngelList is set to announce a deal with China-based private equity firm CSC Venture Capital on Monday that will see it birth a new $400 million fund for early-stage startup investments, according to The Wall Street Journal.
The deal is expected to be the “largest single pool of funds devoted to early-stage startups — ever,” the WSJ reported. Beyond that, it could also be the “largest-ever single investment by a Chinese private-equity firm in a U.S. fund.”
CSC has more than $12 billion under management, and just raised $2 billion through a listing on China’s stock market in March. Prior to this deal, AngelList had raised a total of $205 million — or about half the amount represented by the new funds.
The platform brings together angel investors who band together to back early-stage startups in syndicates, typically not much larger than $300,000 per round. According to the report, AngelList will inject about $20 million from the new fund in the first year, moving up to $50 million per year thereafter.
Here’s what it really boils down to:
With all this institutional capital from CSC, AngelList will be able to do deals faster, because CSC will be able to participate in any investment syndicate, writing relatively large checks and making the site’s angel-investor leads less reliant on the individuals in their syndicate.