Source Code Capital closes new dual-currency growth fund at $600 million
Long-term support and companionship for the great enterprises of this era as they grow.
Source Code Capital has closed a new growth fund totaling $600 million across both RMB and USD, with backing primarily from corporate investors and a select group of long-term financial investors.
The new fund will focus on two themes: "AI+" and "Global+." The AI+ strategy will target AI-to-consumer and AI-to-professional applications, as well as the compute infrastructure chain — supporting breakthroughs in critical bottlenecks and the large-scale commercialization of AI. The Global+ strategy will focus on smart hardware and software applications, systematically identifying opportunities for China's integrated capabilities to expand globally.
"On one hand, AI's rapid evolution is dramatically boosting productivity and represents the most significant technology trend of the next decade. On the other hand, as material foundations have substantially improved, people's lifestyles have grown increasingly diverse — the pursuit of a better life will continue to spawn more innovative consumer products, such as cultural goods, and new consumption patterns," said Yi Cao, founding partner. Source Code Capital will continue to follow its value thesis of "making business smarter, making life better," with a core focus on generational innovation driven by technology, product, and business model — particularly companies with strong business models and corporate culture.
In terms of investment stage, this growth fund will emphasize growth-stage deals, while Source Code Rhythm — the early-stage fund led by Yungang Huang that has since become independently operated — will focus on seed and early-stage investments.
The fund has a five-year investment period and a 20-year exit period, for a total lifespan of 25 years.
"This growth fund is somewhat smaller than our previous one, but we insisted on a long exit period. This is an active bet on the future and a firm commitment to entrepreneurs, rooted in our strong confidence in China's economy and the innovative growth of Chinese enterprises," Cao said. He noted that AI and globalization will bring massive, lasting transformation and restructuring to business, even as geopolitics and capital markets remain highly uncertain. For this reason, Source Code Capital aims to make concentrated, selective bets — supporting innovative companies over the ultra-long term to help them navigate cycles and develop healthily — while providing deep, enduring support to founders, accompanying them through continuous iteration.
This deliberate choice reflects a strategic recalibration: moving away from scale expansion toward "focus" and "depth" through strategic contraction, using a long-term mindset to counter uncertainty and find durable value within it. "China's market will see more and more patient capital in the future," Cao said.
As of now, Source Code Capital manages approximately $7 billion (RMB 50 billion) in assets. Since its founding in 2014, it has invested in over 300 startups across AI & Robotics, smart manufacturing, internet & consumer, and life sciences. Notable portfolio companies include ByteDance, Meituan, KE Holdings, Li Auto, Unitree, ESWIN Material, SEVB, Blokees, RLX Technology, Tastien, Yuanbao Inc., OPay, Stori, LiblibAI, and Moonshot AI.
