Source Code Rhythm has raised over $150 million for its first fund and has launched RMB fund fundraising.

"Another oversubscribed early-stage USD fund."

Recently, Source Code Rhythm completed the first close of its debut USD fund, raising over $150 million — exceeding its original target. Its limited partners (LPs) span a diverse mix of Middle Eastern sovereign wealth funds, globally renowned fund-of-funds, multinational corporations, strategic corporate investors, global family offices, and prominent entrepreneurs. At the same time, Source Code Rhythm has officially launched its RMB fundraising, further completing its dual-currency setup.

"This fund received significant oversubscription from numerous LPs during the fundraising process, which reflects not only trust in the Source Code Rhythm team, but also global capital's firm confidence in 'innovation originating from China,'" said Yungang Huang, Managing Partner of Source Code Rhythm. "But in this AI-driven mega-wave, deep cognitive iteration matters far more than mere resource accumulation. That's why we ultimately chose to actively control fund size — to preserve investment acuity and focus."

Source Code Rhythm emerged from an internal entrepreneurship initiative within Source Code Capital's VC business, eventually spinning out to operate independently in May 2025. The fund is led by Yungang Huang, focuses on early-stage investment, and raises capital and makes decisions independently. The debut USD fund will zero in on AI as the era's biggest variable, with concentrated bets on three areas: AI infrastructure and applications, robotics and hardware, and global expansion — seeking structural opportunities driven by technological disruption. Core team members have built solid track records through involvement in investments in representative companies including Kimi, Unitree, Galaxea, Booster Robotics, and Sand.ai, accumulating substantial hands-on experience in the space.

Yungang Huang elaborated on Source Code Rhythm's investment logic: "We focus on three core dimensions. First, AI nativeness — we don't look at superficial 'AI+' packaging, but at AI's substantive contribution to the business model, its transformative improvement of user experience, and the team's depth of understanding of technology evolution trends. Second, paradigm-breaking capability rather than incremental improvement — the ability to break free from existing frameworks and design products for the future, rather than patching up old systems." Beyond business models and products, Source Code Rhythm equally values whether entrepreneurs possess genuine mission-driven conviction. "Don't start a company just for the sake of starting a company — it's hard to go the distance."

To date, the debut USD fund has already deployed capital in multiple early-stage projects. Its first investment went to Nuoyin Intelligent, whose founder Li Yinchuan is a former Huawei executive with distinctive thinking and frontier exploration into bringing embodied intelligence into households — a direction that remains a non-consensus area in the industry today. Another investment went to Kitar, a Southeast Asian secondhand e-commerce platform that takes China-validated business models overseas while using AI to reconstruct efficiency and experience.

"The former represents non-consensus technology frontiers; the latter represents paradigm migration in model-driven global expansion — exactly the kind of big opportunities we're looking for," Huang believes. AI technology change has reached an inflection point of rapid penetration, where new supply will bring substantial productivity gains. And China's innovation and entrepreneurship ecosystem is vibrant, with both technological foundations and entrepreneurial spirit in place. "Many new products and great companies will emerge going forward."

Regarding Yungang Huang and Source Code Rhythm, Yi Cao, Founding Partner of Source Code Capital, also expressed strong support. He believes that "AI will be a super mega-wave with enormous opportunity and rapid change. This is both an opportunity for AI entrepreneurship and an opportunity for VC entrepreneurship, because in such circumstances cognition matters more than resources. Therefore, Yungang leading a lean team to found Source Code Rhythm, focusing on early-stage investment and going deep into the front lines to discover and invest in AI startups, is the most effective way to achieve cognitive iteration in the current era — it's also a dual structure of entrepreneurial spirit and focused energy." Moreover, Source Code Capital will continue to provide solid support to Source Code Rhythm in terms of ecosystem resources and entrepreneur services going forward.

Image source | Unsplash

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