Chinese VC Source Code Capital closes fourth RMB fund at $567m

Beijing, China. Source: Li Yang/Unsplash

Chinese venture capital firm Source Code Capital announced on Monday that it has closed its fourth RMB-denominated fund at 3.8 billion yuan ($567 million), bringing the total assets under management (AUM) of its four RMB funds to 8.8 billion yuan ($1.3 billion).

The VC also has $1.5 billion in AUM under its five dollar-denominated funds.

The latest RMB fund received capital commitments from Chinese financial institutions, funds of funds (FOFs), large-scale listed industry groups, and government-led funds, said the firm in a WeChat post.

Beijing-based Source Code Capital said that over 70 per cent of the pool of new capital came from its former limited partners (LPs) thanks to the track record of its RMB fund series. Seven of its portfolio companies have had initial public offerings (IPOs) so far, including, most recently, electric vehicles (EV) maker Li Auto‘s $1.1-billion offering on Nasdaq and a $2.12-billion IPO of online real estate broker KE Holdings, also known as Beike Zhaofang.

Source Code Capital invests in Industrial Internet of Things (IIoT), intelligent manufacturing, and robotics firms that serve corporate clients, as well as consumer-focused businesses in the new consumption sector. It has a team of nearly 80 people.

The firm was founded in the spring of 2014 by Cao Yi, former vice-president of Sequoia Capital China. The firm has backed almost 200 companies in the fields of media, consumption services, retail, automobile, real estate, education, and healthcare, among others.

Some of its portfolio companies include ByteDance, the Chinese operator of video-sharing app TikTok, elevator-ad firm Xinchao Media, local services platform Meituan Dianping, e-cigarette firm RELX, and Nigerian fintech startup OPay.

“In general, the fundraising work [for the fourth RMB fund] went well despite the volatile external environment this year,” said Cao in a statement. “With the support of former and new LPs, we will be able to provide stronger, and more enduring support to new economy enterprises across various development stages.”

Source Code Capital had closed two funds, Source Code Venture IV and Source Code Growth Fund I, with $570 million in total commitments in April 2019.

The firm announced in April 2017 that its third RMB fund had reached the first closing and had targeted a fund size of 1.5 billion yuan ($224 million). Alongside this, the firm had also closed its third US dollar fund at $260 million.

In April 2015, it had completed the fundraising for its second RMB and USD funds at 200 million yuan ($29.8 million) and $150 million, respectively.

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.