One of China’s largest private equity firms is now tapping the platform and the know-how of its angels and syndicates to power a $400 million seed fund called CSC Upshot. The fund will be run by the country’s third-largest private equity firm, China Science & Merchants Investment Management Group, which has $12 billion under management. It’s likely the largest fund that has ever existed to fund companies at such an early stage. Typically, the larger a fund gets, the more it must move toward growth- and later-stage investments to earn a return. “Firms often raise more money to get more fees. But with our model,...