Start-up investing platform AngelList announced on Monday that its start-ups will be getting $400 million from a new Chinese venture capital firm.
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 uses syndicates to allow investors to co-invest in deals led by experienced angels and VCs.
"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 told CNBC's "Squawk Alley" on Monday.
"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."
The recent market correction has shown that late-stage investing in start-ups has lagged, said Ravikant. "You don't want to be a company that is burning tens of millions of dollars a year and hoping that you are about to raise another $200 million around the corner."
But he said that technology start-ups have a leg up, since it takes fewer people to run these types of businesses. AngelList employs about 30 people, according to Ravikant.
"The beauty is today it takes very few people to do anything in the tech business. You have incredible embedded leverage through technology, open-source software, platforms and mobile phones."