FBI Investigates Hone Capital Over Alleged Transfer of Trade Secrets to China, Involving AngelList and $80 Million

Sep 25, 2024, 01:54 PM

The FBI is investigating Hone Capital, a Silicon Valley venture capital firm backed by Chinese investors, over allegations that it allowed Beijing to obtain trade secrets and sensitive data from U.S. tech startups. Hone Capital, which launched in 2015, has invested in 360 U.S. tech startups, including notable companies like Stripe, Cruise, and Boom. The probe also involves AngelList, a prominent investment platform that received an $80 million cash injection from Hone Capital between 2015 and 2016. The investigation follows warnings from the U.S. National Counterintelligence and Security Center (NCSC) about foreign adversaries using investments to acquire sensitive data and threaten national security. It is reported that CSC transferred $215 million via Shanghai and Cayman entities to its U.S. entities, which was then deployed into 360 startups.