Source Code Capital Closes $570 Million New Fund

On April 8, Source Code Capital announced the closing of a new $570 million fund focused on early-to-growth-stage investments in the new economy. The firm now manages $1.5 billion in USD-denominated capital and 3.5 billion RMB. Over the past five years, Source Code Capital has raised six funds (three USD and three RMB) — all delivering top-quartile IRR and DPI for their respective vintages. More than ten of its portfolio companies have grown into unicorns or super-unicorns.

Founded in spring 2014, Source Code Capital has spent five years identifying and supporting leading enterprises in the information revolution. With this new fund, the firm will continue to focus on early and growth-stage ventures across "Internet+," "Intelligence+," and "Global+" — working alongside resilient, bold entrepreneurs to drive commercial transformation through technology and capital, creating lasting, real value.

Top Global Institutional LPs Continue to Increase Commitments

The new fund attracted strong interest from world-class sovereign wealth funds, university endowments, charitable foundations, pension funds, funds of funds, family offices, and leading corporations. Despite significant oversubscription, Source Code Capital maintained discipline and adhered to its investment strategy in setting the fund size, keeping to its original target.

"We are deeply grateful for the steadfast confidence these top-tier global institutions have placed in our team, track record, investment strategy, market position, and network," said Yi Cao, founding partner. "Their efficient and rigorous investment decisions enable us to support new economy companies across more stages, with greater endurance and resources — helping them become leaders in China and globally, while generating outsized long-term returns for our LPs."

With the fundraise completed, "Ma Hui" has grown further, particularly with the addition of more industrial capital from Europe, the US, Japan, South Korea, and Southeast Asia. Ma Hui is Source Code Capital's distinctive industry super-connector — a mutual-aid alliance comprising over 30 global new economy leaders (as LPs) and nearly 150 portfolio companies.

Deep Research-Driven Investing Under the "Three Horizontals, Nine Verticals" Framework

Since 2014, Source Code Capital has developed its "Three Horizontals, Nine Verticals" investment map, using deep research to identify outstanding innovative companies with long-term value.

The firm has deployed capital across nearly 150 investments driven by three major forces — "Internet+," "Intelligence+," and "Global+" — spanning media and content, consumer services, enterprise services, finance, retail, automotive and real estate, education, and healthcare. Portfolio companies (selected) include: ByteDance, Meituan (3690.HK), Lianjia; Qudian (NYSE: QD), Asset360, Zhirong Group, Insnail, Cijinrong, Abbotz; Yijiupi, Yimi Dida, Xiaoyaoyao, Edianzu, Baibu, ZNLH, YQN Logistics, Rui Gu; Pagoda, RELX, MOGU (NASDAQ: MOGU), Xinchao Media, Ziroom, Juli Xinfang, Huizhaofang, CHJ Automotive, Car300, NIU Technologies (NASDAQ: NIU), Hai Feng Education, Knowbox, Walnut Coding, WeiMai, Huishoubao, Linlinyi, Linji; Krazybee, Zenjoy, Bluepay, and others.

Source Code Capital's strategy and results have earned recognition from media institutions at home and abroad. In the past year, the firm received honors including Zero2IPO's Top 20 China VC Firms 2018 and 36Kr's Top 10 Most Influential China VC Firms 2018. Founding partner Yi Cao was named to Forbes' "Midas List" of the World's Best Venture Capitalists in both 2018 and 2019. Partner Yungang Huang was recognized by 36Kr as one of China's Top 100 Most Entrepreneur-Friendly Investors 2018 and Top 10 Education Sector Investors.

Strengthening Organizational Capabilities, Especially Systematic Post-Investment Services

After five years of development, Source Code Capital has built a team of nearly 60 professionals across investment, post-investment, and platform functions. The past two years have seen particular emphasis on post-investment capabilities. The firm has assembled a passionate, professional post-investment services team covering human capital, policy research, brand and communications, capital对接, and Code Brain — addressing portfolio companies' needs across all dimensions. In 2018 alone, the team completed 426 post-investment actions: the human capital department recommended nearly 1,000 senior candidates to help portfolio companies fill core roles; the policy research team tracked regulatory developments and delivered policy briefs to help Ma Hui entrepreneurs interpret regulations and adjust direction; internal financing advisors connected portfolio companies with capital within the Ma Hui ecosystem to facilitate follow-on rounds; the brand and communications team provided consulting to help portfolio companies develop PR strategies. Additionally, Source Code Capital organized multiple Code Brain sessions designed to upgrade CEOs' cognitive frameworks — helping them expand their mental models, evolve their thinking, and achieve energy breakthroughs.

"Every day, the Source Code team works tirelessly to find, invest in, and support the best new economy companies," said Yi Cao. "These companies and entrepreneurs are relentlessly exploring how to help consumers eat better, dress better, live better, play better, access more inclusive finance, travel more conveniently, broaden their horizons, learn more, stay safer, and be healthier — realizing aspirations for a better life. They help enterprises across industries achieve more effective sales growth, lower procurement and logistics costs, faster capital and inventory turnover, more efficient and scientific management, greater talent value creation, and stronger global competitiveness — fulfilling dreams of smart, sustainable operations. We hope to quietly support every resilient, bold entrepreneur behind the scenes, jointly driving commercial transformation and making all of this happen — creating lasting, real, and immense value for society."