The FBI is investigating Hone Capital, a Palo Alto-based venture capital firm, for allegedly passing trade secrets to Beijing. Hone Capital, which launched in 2015, has invested in 360 U.S. tech startups using $115 million in initial capital from China Science & Merchants Investment Management Group (CSC). The probe is examining whether the firm allowed Beijing to obtain sensitive data, including trade secrets, technology, and client information from tech startups like Stripe and Cruise. The investigation has also implicated AngelList, a prominent investment platform, which received an $80 million cash injection from Hone Capital between 2015 and 2016. This case highlights concerns about foreign investments in Silicon Valley tech companies and their potential impact on national security.