Chinese VC firm Source Code Capital Raises $1 Billion

Cao Yi, who graduated from Tsinghua University in computer science, founded Source Code Capital in 2014. (Source: Source Code Capital)

Chinese venture capital (VC) firm Source Code Capital, which has backed some of the country’s biggest tech firms and unicorns, announced on Tuesday it has raised a total of $1 billion in fresh funds.

The latest fundraise boosts Source Code’s capital under management to $2.5 billion and 8.8 billion yuan, the company said. Investors included both old and new backers, the firm added, without disclosing who the limited partners are.

Upon completion of the new fundraise, Source Code Capital will continue to make early- and growth-stage investments in To B and To C industries. The firm follows its “Big 3 Fundamental Drivers” investment roadmap, which includes Internet+, AI+ and global+. Global+ refers to Chinese businesses focused on the international market.

“We will continue to partner with and work hand-in-hand with visionary and audacious entrepreneurs, and through the compounded power of technology and capital, strive to change the world,” said Cao Yi, CEO and Founding Partner of Source Code Capital.

“We are dedicated to be the most entrepreneurial investment institution, and through outstanding performance, generate long-term and outsized returns to our investors,” he added.

Cao, who graduated from Tsinghua University in computer science, founded Source Code Capital in 2014. He previously worked as vice president at Sequoia Capital and investment manager at Ceyuan Ventures.

Since then, the VC firm has backed more than 200 Chinese technology founders, including Baidu, TikTok owner ByteDance, food delivery platform Meituan, micro-credit provider Qudian, EV startup Li Auto and electric scooter company NIU Technologies.

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In October 2020, Source Code Capital raised 3.8 billion yuan ($580 million) from mainstream domestic financial institutions, large-scale listed industry groups and government-led funds.

It also runs a well-established peer and mentor alliance called Code Class, which consists of high-profile investors and portfolio companies. Within the community, members can exchange experiences, resources and feedback to one another.