AngelList And CSC Upshot Raise $400 Million To Invest in Start-Ups

CSC Upshot, a new venture capital firm, has raised a $400 million fund to invest in start-ups on AngelList. This partnership creates the largest fund dedicated to seed-stage startups.

CSC Upshot will primarily invest in syndicates led by angels and other venture capital firms on the AngelList site. It’s part of the CSC Group, one of China’s three largest private equity firms with $12 billion under management.

AngelList is the online investing platform that has scaled to support $205 million in investments across 650 start-ups including Uber. The average valuation on AngelList’s platform has risen to $5.1 million in the third quarter of this year compared to $4.5 million three years ago.

AngelList uses syndicates to allow investors to co-invest in deals led by experienced angels and VCs. CSC Upshot will primarily invest in syndicates led by experienced angels and venture capitalists. It will help syndicates make larger, faster investments in early-stage startups and their follow-on rounds. It will also help promising new syndicates make investments while they’re building a backing from individual investors.

CSC Upshot is going to help seed-stage start-ups raise larger, faster rounds online.

“CSC Group’s money, in addition to about half a dozen LPs [limited partnerships] that we already have in the platform, will back the top syndicate lead,” AngelList co-founder and CEO Naval Ravikant recently told CNBC’s Squawk Alley. He added, “So it gives them committed, reliable, institutional capital, very similar to what small VC funds would have. And it allows us to scale the platform even further as we deploy capital behind hundreds of these blue-chip angel investors when they write their own checks.”

Syndicates allow investors to co-invest in deals led by experienced angels and VCs. CSC Upshot adds to the $205 million already invested through syndicates by 4,400 individuals (many of whom are startup founders) and Maiden Lane, a $25M fund whose limited partners include Top Tier Capital and Makena.

Over 650 start-ups have raised money from syndicates including Shyp, Sprig and Luxe. And there are 165 active syndicates including Dave Morin, Elad Gil and Foundry Group.

Syndicate leads will earn their full carry on CSC Upshot’s investments. Leads can accept or decline capital from CSC Upshot, just like any other backer. And CSC Upshot’s investments will leave room for individual investors.

About CSC Upshot
CSC Upshot is based in the U.S. and is independent of AngelList. Its general partners, Huoy-Ming Yeh and Veronica Wu, are both engineers with degrees from MIT and Berkeley. They have had long careers in technology and venture capital, including work at Tesla, Apple, SVB Venture Capital and PacRim Venture Partners. The fund’s largest limited partner is CSC Group. Founded in 2000, it is one of China’s 3 largest private equity firms, with $12B under management. Their investing areas include information technology, new materials and clean energy. CSC Group’s founder, Mr. Shan Xiangshuang, is co-chairman of the China Venture Capital Association and regarded as a pioneer in Chinese venture capital. Their U.S. venture capital arm is led by Tom Cole, a former startup CEO and general partner at Trinity Ventures, with engineering and MBA degrees from Yale and Stanford.

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