China’s Source Code Capital in the market to raise $1b across two funds

Beijing, China. Source: Li Yang/Unsplash

Source Code Capital, a Beijing-based venture capital (VC) firm that has backed tech companies like TikTok owner ByteDance, is seeking to raise a total of $1 billion for two new funds, according to its filings with the U.S. Securities and Exchange Commission (SEC) on March 12.

Led by founding partner Cao Yi, Source Code has set targets to garner $580 million for Source Code Growth Fund II and $420 million for Source Code Venture Fund V.

The firm’s latest fundraising efforts come after the close of its fourth RMB-denominated fund at 3.8 billion yuan in October 2020. The completion of the fourth RMB fund brought its total assets under management (AUM) to 8.8 billion yuan. It also manages $1.5 billion in AUM through five USD funds, the firm announced in a statement back then.

The predecessor funds, Source Code Growth Fund I and Source Code Venture IV, had secured $570 million in total commitments in April 2019.

Source Code did not specify limited partners (LPs) of its funds. But on its official website, the firm said that it serves a network of global LPs, including sovereign wealth funds, endowments, foundations, pensions, funds of funds (FOFs), enterprises, as well as China’s central government-guided funds and state-owned companies.

Source Code was founded in 2014 by Cao, who studied computer science at Beijing’s Tsinghua University and later became a vice president at Sequoia Capital China, a bellwether of tech investments in China. The firm invests across early- and growth-stage startups in sectors including media & entertainment, consumer services, enterprise, finance, retail, transportation, housing, education, and healthcare.

With a team of about 80 people, Source Code focuses on what it refers to as “Big 3” fundamental drivers, namely “Internet+,” “AI (artificial intelligence) +,” as well as “Global+,” which means China-angle companies in the international arena.

To date, the firm has backed nearly 200 companies, including some of China’s biggest tech players like TikTok-owner ByteDance; food delivery giant Meituan; online real estate service KE Holdings; electric vehicle (EV) major Li Auto; Xinchao Media, which runs ads in elevators across China; and online micro-credit provider Qudian; to name but a few.

Earlier this month, Source Code injected capital into a 400-million-yuan Series C+ round in Chinese online-to-offline (O2O) real estate agency Julive. It also co-led a Series C2 round for engineering equipment supplier Zhongneng United, which secured a total of over 3 billion yuan in the Series C2 round and a Series C3 round.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.