AngelVest Preps $10 Million China Fund, Will Focus on Seed Funding

In great news for China-based startups, they’ll soon have a new potential source of seed funding in the form of a $10 million fund from Shanghai-based AngelVest. Co-founder David Chen points out that the new AngelVest Fund LP will be ready “in the next 12 to 18 months.”

While AngelVest has been actively funding a number of startups since its inception in 2007 – such as very recently in the language learning marketplace iTalki – this is the investment group’s first dedicated China fund.

The AngelVest move fits in nicely, states David, alongside the recent second fund, holding $148 million, from Innovation Works. That’s because the AngelVest Fund will be geared totally towards seed funding of about “$250,000 per company” in contrast to how Beijing-based Innovation Works can go as high as series A funding of millions of dollars. But there’ll undeniably be a bit of competition at seed-fund level – which can only be good for China-based entrepreneurs.

Looking forward, AngelVest’s David says in the recent announcement that the group might “look to raise multiple funds in different cities” in China, such as, say, one that focuses on startups in just the south of China, in the Shenzhen and Guangzhou area.