Code Moment | Source Code Capital Launches Seed-Stage Investment Initiative

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Bet on your leap of faith

#CodeMoment Key Updates from Source Code Capital and MaHui Members

Source Code Capital's seed-stage arm, backing your leap of faith.

Source Code Capital has officially launched Source Code Yisu (一粟), a dedicated seed-stage investment operation that will run independently within the firm's broader investment framework. Led by Xingchen Zhang, Managing Director at Source Code, Yisu fields its own investment team and operates on a "back the founder" philosophy and decision-making structure — identifying, supporting, and walking alongside technology entrepreneurs building from zero to one.

"Since our founding in 2014, Source Code has remained focused on technology-driven innovation, believing that technological transformation creates lasting, real value," said Yi Cao, Founding Partner at Source Code Capital. "Especially as we've moved into the 2020s, China has accelerated its push for technological self-reliance and strength. In step with this era, we're seeing a wave of zero-to-one technology entrepreneurs emerging right now — people with conviction and courage, pushing at the boundaries of uncertainty to build what no one has built before. With Yisu, we want to carry forward Source Code's original entrepreneurial spirit and help bring more Chinese technology companies into being."

In its prior investing, Source Code had made seed-stage investments of RMB 20 million (roughly $3 million) or below in 140 companies, with several going on to become unicorns — including Cloud Whale, Chuxin, Ruigu, RELX, and Baibu. But this work had never been systematized. It lacked a tailored methodology and represented only a small slice of total deployment. Xingchen Zhang, who joined Source Code in 2014, has covered and invested across industrial digitization, enterprise services, robotics, semiconductors, and AR/VR, developing deep insight into founders. He will now lead the firm's zero-to-one technology investing.

"Yisu" — literally "a grain in the vast sea" — is Source Code's name for this seed-stage effort. In his launch speech, Zhang said: "We're willing to traverse mountains and oceans to find a single precious seed. And that seed contains not just the founder's conviction, but ours as well. Within one grain, zero-to-one technology can break through imagination and open up entirely new possibilities. That's the spirit of 'when one grain lives, all things live.'"

Centered on people, "back your leap of faith" is Yisu's distinctive investment thesis. For now, the team is looking for technology entrepreneurs who bring sharp insight into real needs or problems, sharp solutions, and sharp iteration methods — and who are animated by a pioneering spirit and real courage.

Yisu's investment team members each have at least three years of investing experience, come from diverse backgrounds, and move fast on decisions. During a trial run in the first half of 2022, Yisu invested in more than ten companies with average decision times of under one week. One founder is using an AI-plus-materials paradigm to manufacture aircraft engine blade materials, replacing high-end metal imports. Several senior executives left major tech companies to build either AR/VR interaction infrastructure or cutting-edge AR/VR content platforms. A PhD student working on a globally leading standardized power controller received a term sheet from Yisu on the same day they met — a rapid, decisive move that embodies the team's commitment to backing founders' conviction.

Founders can now submit a three-minute video or PDF through Source Code Capital's website via the "Pitch Your Startup" page or by clicking "Read More" below, with a response guaranteed within seven days. Additionally, Source Code's WeChat official account will host regular "Leap of Faith" livestreams where the Yisu team will invite unicorn CEOs and seed-stage founders for candid conversations, and take questions online about navigating the challenges of entrepreneurship.

Source Code Capital is an investment firm built on founder spirit. It values entrepreneurs and is committed to "all-in for you": MaHui for connecting founders into the broader startup ecosystem, Code Brain courses for sharpening entrepreneurial cognition, and MaLi services for helping founders succeed. As a dedicated seed-stage operation, Source Code Yisu will carry this exploratory commitment even further — into the conviction and courage of zero-to-one technology entrepreneurs.

About Source Code Capital

Source Code Capital is an investment firm built on founder spirit.

Founded in spring 2014, Source Code has consistently invested in technology-driven innovation and the creation of lasting, real value. It has backed more than 300 startups, including ByteDance, Meituan (3690.HK), KE Holdings (NYSE: BEKE), and Li Auto (NASDAQ: LI, 2015.HK), across seed, early, and growth stages. Sectors covered include industrial digitization, intelligent manufacturing, consumer technology, life sciences, green development, and global expansion. The firm values entrepreneurs and is committed to "all-in for you," offering MaHui for ecosystem connections, Code Brain courses for entrepreneurial learning, and MaLi services for founder success.

Source Code manages approximately RMB 35 billion across RMB and USD funds. Its capital comes from national guidance funds, local technology innovation funds, financial institutions, market fund-of-funds, corporate investors, globally renowned sovereign wealth funds, university endowments, charitable foundations, and pension funds. The firm operates with more than 130 investment and professional staff across offices in Beijing, Shanghai, and Shenzhen.