Source Code Rhythm Closes Over $150 Million Fund, Focuses on AI and Globalization

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

"This fund was oversubscribed by 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 super wave, deep cognitive iteration matters more than simply piling up resources. That's why we ultimately chose to actively control fund size — to preserve our investment sharpness and focus."

Source Code Rhythm's debut USD fund will zero in on AI as the era's biggest variable, with concentrated bets across three domains: AI infrastructure and applications, robotics and hardware, and global expansion — seeking structural opportunities driven by technological disruption. The team's core members have in their prior investment track records participated in backing representative companies including Moonshot AI, Unitree, Galaxy Universal, Booster Robotics, and Sand.ai, accumulating solid 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 qualitative leap in 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, instead of patching up old systems." Beyond business model and product, 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 otherwise."

To date, the debut USD fund has already deployed capital into multiple early-stage projects. Its first investment went to Nuoyin Intelligence, whose founder Li Yinchuan is a former Huawei employee with distinctive thinking and frontier exploration into embodied intelligence entering households — a direction that remains a non-consensus area in the industry today. Another investment is Kitar, a Southeast Asian secondhand e-commerce platform that takes China-proven 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 seeking," Huang believes. AI technological change has now 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. "Going forward, many new products and great companies will emerge."

Yi Cao, Founding Partner of Source Code Capital, also expressed his full support for Yungang Huang and Source Code Rhythm: "AI will be a super wave — the opportunity is massive and the changes are happening fast. This is both an opportunity for AI entrepreneurship and for VC entrepreneurship, because in such circumstances cognition matters more than resources. Therefore, Yungang leading a lean team to found Source Code Rhythm, focused on early-stage investing and going deep on the ground to discover and back AI startups, is the most effective way of cognitive iteration for the present moment — it's also a dual structure of entrepreneurial spirit and focused energy." Going forward, Source Code Capital will continue to provide solid support to Source Code Rhythm in ecosystem resources and founder services.

"About Source Code Rhythm"

Source Code Rhythm — meaning "going with the momentum, rhythm of the future" — is the spin-out and independent continuation of Source Code Capital's VC business through internal entrepreneurship, formally becoming independently operated in May 2025. Source Code Rhythm is an early-stage fund with independent fundraising, independent decision-making, and independent operations, led by Managing Partner Yungang Huang, with concentrated focus on AI infrastructure and applications, robotics and hardware, and global expansion.