Source Code Capital Announces Successful Close of Fund III to Help Tech Companies Create Lasting, Real Value

Yi Cao, founder of Source Code Capital, announced today in his opening remarks at "Ma Hui" that the firm has successfully raised its third fund: the final close of a $260 million Fund III USD and the first close of a 1.5 billion RMB Fund III RMB.

According to sources, Source Code Capital's USD Fund III attracted commitments from multiple sovereign wealth funds, a prominent American charitable foundation, pension funds, fund-of-funds, and family offices. The RMB Fund III, while continuing to bring in new-economy entrepreneur-leaders, also received investments from national guidance funds, top-tier fund-of-funds, and large state-owned enterprises.

Yi Cao, founding partner of Source Code Capital, stated: "The successful fundraising for Fund III means this newborn, Source Code, has found a small foothold in the industry and is entering its toddling stage. Over three years, gaining the support of so many heavyweight investors is tremendous encouragement and motivation for the Source Code team. We will continue to forge ahead in fundraising, investing, portfolio management, exits, and organizational development."

"Over three years since founding, Source Code Capital has invested in more than 80 companies, with strong growth — 25 portfolio companies have reached valuations exceeding $100 million. We've also built a team of over 30 professionals in investing, portfolio management, and platform support, helping technology enterprises create lasting, real value," Cao said.

Since its founding in 2014, Source Code Capital has focused on "Internet Plus," including investments in fintech, industrial internet, service internet, "Intelligence Plus," "Global Plus," and other innovative sectors.

Cao believes the driving force behind the information industry's development comes from the push of abundant computing supply powered by Moore's Law and the economic pull of ever-growing consumer demand and production demand. In September 2016, he proposed the "Three Horizontals, Nine Verticals" investment map, where the "three horizontals" represent three major waves and the "nine verticals" represent nine vertical industries. The three waves are "Internet Plus," "Intelligence Plus," and "Global Plus." The nine verticals are media and entertainment, communications and search, retail, travel and transportation, dining, housing, government-education-culture-healthcare, finance, and enterprise services. These vertical industries will undergo transformation and evolution driven by the three waves.

Based on this map, Source Code Capital has conducted its investment thinking and actions, backing fintech companies including Qudian (Qufenqi), GESAFE, INK Group, Zhirong Group (Yongqianbao), Suishou, and Cijinrong; industrial internet companies including Yijiupi, Yimi Dida, Sales Crown Network Technology Co., Ltd., and Rui Gu; service e-commerce companies including Meituan, Lianjia, MOGU, and Kanjia; as well as "Intelligence Plus" companies such as Toutiao and CHJ Automotive, and "Global Plus" companies including Zenjoy and Mybo.

Meanwhile, from its inception, Source Code Capital has emphasized building connections between emerging startups and industrial capital, and thus established "Ma Hui." "Ma Hui" comprises a "class of upper and lower classmates" including more than 30 new-economy leaders such as executives from BAT and founders of Meituan, Toutiao, VIP.com, Lianjia, Hikvision, Lianluo Interactive, Kunlun Tech, Kuka Home, and Autohome, alongside over 50 well-known financial institutions and more than 80 new entrepreneurs. Over the past three years, Ma Hui has achieved remarkable results: over 3 billion RMB in internal equity investment cooperation, more than 10 significant strategic partnership cases, and dozens of industry exchange and sharing sessions of various sizes.

Since its founding in May 2014, Source Code Capital has focused on "Internet Plus" investments, including verticals in fintech, industrial internet, service internet, and content internet. Going forward, while continuing to double down on "Internet Plus," the firm will increase investments in innovative sectors such as "Intelligence Plus" and "Global Plus."

Source Code Capital 2017 Ma Hui promotional video