Beijing-based Source Code backed ByteDance, the owner of TikTok.

Source Code Capital, the highly regarded Chinese VC firm, announced today its raise of $1 billion for new dollar-denominated funds. According to DealStreetAsia, the funds are presumably intended for Source Code Growth Fund II ($580 million) and Source Code Venture Fund V ($420 million), going by a previous filing with the U.S. SEC.

In April 2019, Source Code raised $570 million in aggregate for Source Code Growth Fund I and Source Code Venture Fund IV.

In October 2020, it raised 3.8 billion yuan ($580 million) from investors for its RMB-denominated funds.

The firm’s portfolio companies have an impressive track record:

• IPO – 8 companies
• Unicorns – More than 20
• Decacorns – 3
• Valuation over $100 billion – 2

Portfolio names include Baidu, TikTok owner ByteDance, food delivery platform Meituan, micro-credit provider Qudian, EV startup Li Auto and electric scooter company NIU Technologies.

Investment strategy

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

Cao founded Source Code Capital in 2014. He graduated in computer science from Tsinghua University and went on to work with Sequoia Capital and as an investment manager at Ceyuan Ventures.

Source Code typically seeks investment opportunities in Internet, AI, and Global verticals with an emphasis on companies in the businesses of intelligent manufacturing, robotics, and SaaS.

Related Story:    Matrix Partners China Raises $1.2B For Sixth Fund