ByteDance-backer Source Code Capital raises $1b for latest venture funds

Beijing, China. Source: Li Yang/Unsplash

Venture capital firm Source Code Capital, which has backed Chinese tech upstarts such as TikTok owner ByteDance, on Tuesday announced that it has raised $1 billion for its latest USD-denominated funds.

All of the firm’s existing limited partners (LPs) invested in the new vehicle, Source Code said in its statement. The fundraise brings its assets under management to $2.5 billion and 8.8 billion yuan ($1.3 billion) across multiple dual-currency funds.

The VC firm did not disclose details of its latest funds. A previous filing with the US Securities and Exchange Commission showed it was seeking to raise $580 million for Source Code Growth Fund II and $420 million for Source Code Venture Fund V.

The firm had previously raised $570 million in total for predecessor funds, Source Code Venture IV and Source Code Growth Fund I, in April 2019.

Source Code also manages four RMB-denominated funds, the size of which has been growing significantly with each fundraising attempt. In Oct 2020, its latest RMB funds hit a final close at 3.8 billion yuan, significantly larger than RMB Fund II (200 million yuan) and RMB Fund III (1.5 billion yuan).

Beijing-based Source Code said it will continue to make early- and growth-stage investments in the areas of internet+, artificial intelligence (AI)+, and global+. Specifically, it focuses on intelligent manufacturing, robotics, and Software-as-a-Service (SaaS) companies among B2B sectors. Among consumer-facing businesses, Source Code favours new consumption content and new consumer brands and channels.

Source Code was created in 2014 by Cao Yi, who studied computer science at Beijing’s Tsinghua University and later became a vice president at Sequoia Capital China. The VC has so far invested in over 200 companies, including food delivery giant Meituan; KE Holdings, a SoftBank-backed real estate services provider that went public on the NYSE in 2020; electric scooter firm Niu Technologies; e-cigarette company RELX Technology; and electric vehicle (EV) manufacturer Li Auto, which completed a $1.1-billion Nasdaq IPO in 2020.

Over the last seven years, Source Code has grown from less than 10 people to a team of over 80 professionals, including six partners, it said in a statement. It claimed to have generated over 20 billion yuan ($3.1 billion) in return for LPs.

As of now, eight of its portfolio companies have completed an initial public offering (IPO). More than 20 have reached a unicorn valuation of at least $1 billion, including three decacorns valued at over $10 billion and two with a valuation of over $100 billion.

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.