Source Code Capital Closes RMB 3.8 Billion for Fourth RMB Fund

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Source Code Capital has recently completed fundraising for its fourth RMB fund, raising 3.8 billion yuan. With the close of this fund, Source Code Capital's assets under management now total $1.5 billion and 8.8 billion yuan.

Source Code Capital has completed fundraising for its RMB Fund IV, raising 3.8 billion yuan. With this close, the firm's total assets under management reach $1.5 billion and 8.8 billion yuan.

The new fund's capital comes primarily from domestic mainstream financial institutions, top-tier fund-of-funds, large publicly listed industrial conglomerates, and market-oriented government guidance funds. Over 70% of the commitments came from existing investors increasing their allocations. LP confidence in Source Code stems partly from the firm's consistently strong performance — its RMB funds have returned more than 6 billion yuan cumulatively, with seven portfolio companies going public, including recent listings by Li Auto (NASDAQ: LI) and KE Holdings (NYSE: BEKE). It also reflects shared conviction in the firm's core principle of "creating enduring, real value." Going forward, these partners will work alongside Source Code to support outstanding new-economy entrepreneurs in driving comprehensive industrial upgrading.

Founding partner Yi Cao commented: "Despite a turbulent external environment this year, the fundraising process went relatively smoothly overall, and I'm especially grateful for the broad support from our longstanding LPs. Our new LPs also complete what the industry calls our 'seven Dragon Balls' — seven leading RMB institutional investors. With their backing, we can support new-economy companies across more stages with greater endurance and force, helping resilient, bold entrepreneurs become industry-leading business builders, and allowing the fundamental transformations in technology and commerce to bring more freedom and betterment to people's lives."

Over its six years, Source Code Capital has grown to nearly 80 professionals, with clear specialization across early-stage investment, growth-stage investment, portfolio support, and platform operations — a front-, middle-, and back-office structure that is mutually supportive and organically integrated. The firm has repeatedly been recognized in top domestic and international venture capital rankings. Founding partner Yi Cao has been named to Forbes' The Midas List for three consecutive years, while partner Yungang Huang made The Midas Brink List in 2020.

Inflection

From its earliest days, Source Code Capital established its "Three Horizontals, Nine Verticals" investment map, within which it seeks out resilient, bold entrepreneurs in "Internet+," "Intelligence+," and "Global+" sectors to build alongside. Through six years of shared growth, Source Code and its portfolio companies have made the leap from early to growth stage. In B2B — spanning industrial internet, intelligent manufacturing, and robotics — and in B2C — spanning new consumption content and channels — new entrepreneurs continue to join the Code Brain community actively. Invested companies have progressively advanced from "first curve" to "second curve" and even "third curve" exploration and execution.

Source Code Capital's investment team completed its specialization and organic collaboration between early-stage and growth-stage teams long ago, enabling it to invest with greater composure and conviction in outstanding companies and entrepreneurs from inception through growth, making consecutive follow-on investments in the best founders and providing sustained support.

Deep, sustained sector research and efficient, professional due diligence allow investment decisions worth hundreds of millions to be made rapidly and with high quality. Recent IPOs by Li Auto (NASDAQ: LI) and KE Holdings (NYSE: BEKE) are standout examples of Source Code's growth-stage investing. The growth team has also invested in B2B companies including Baibu, CassTime, Xiaoyaoyao, Yi Jiupi, Yimi Dida, and ZNLH, as well as B2C companies including ByteDance, Meituan (3690.HK), Li Auto, KE Holdings, Ziroom, Pagoda, Blokees, and ChaYanYueSe — some from early stage with continuous follow-on conviction, others entered at the growth stage after extended evaluation.

The dual perspective of early and growth stages enables more comprehensive, multidimensional vision and more scientific decision-making. It also ensures the investment team as a whole maintains a holistic view of industries, stages, specialization, and value judgment, providing portfolio companies at different phases with more strategic and board-level support.

To date, Source Code has nearly 200 portfolio companies spanning media and content, consumer services, industrial enterprises, finance, retail, automotive and real estate, and education and healthcare. Selected portfolio companies include: ByteDance, Meituan (3690.HK), KE Holdings (NYSE: BEKE); Li Auto (NASDAQ: LI), NIU Technologies (NASDAQ: NIU), RELX, Cloud Whale, Ziroom, Juli Xinfang, Huizhaofang, Pagoda, MOGU Inc. (NYSE: MOGU), Xinchao Media, Walnut Coding, WeiMai, Huishoubao, Linji, Qingzhu, ChaYanYueSe, Wang Baobao; Yi Jiupi, Yimi Dida, Xiaoyaoyao, Baibu, Edianzu, ZNLH, Keenon, Chuxin, YQN Logistics, Ruigu, CassTime, Car300; Qudian (NYSE: QD), Asset360, Woniubao, Cijinrong, Abakus; KrazyBee, Zenjoy/ME2ZEN (KOSDAQ: A950190), BLUE, OPay, among others.

Organizational Strength

Over six years, Source Code Capital has explored and iterated deeply on organization. This organizational development has made internal collaboration more efficient, forming an effective division of labor and collaboration between "special forces" and the "armory." The "special forces" comprise the early-stage and growth-stage investment teams; the "armory" consists of portfolio support and platform professionals who empower both the investment teams and portfolio companies.

With front-, middle-, and back-office coordination, from the very first touchpoint with Source Code people, entrepreneurs receive deep sector and startup insight from the investment team, "heart-and-soul" portfolio support services from the portfolio team, and meticulous, efficient execution from the platform team. This high-performance collaboration also fosters mutual assistance, organic integration, and shared growth among investment, portfolio support, and platform colleagues.

For example, during the acute COVID-19 outbreak around Spring Festival 2020, the investment team rapidly assessed the pandemic's impact on portfolio companies and their urgent needs. The portfolio support and platform teams then urgently launched eight sessions of the Code Brain "Standing Together Against COVID-19" series, addressing entrepreneurs' most pressing concerns — from pandemic prevention, financing, remote work, and policy interpretation to cash flow management.

As the pandemic eased, production resumption and growth recovery became top priorities. Many new consumption companies in Source Code's portfolio expressed traffic concerns to their investment contacts. The portfolio support team followed up on these needs and, during the Double Eleven preparation period, facilitated deep marketing communication and cooperation between new consumption portfolio companies and ByteDance's Douyin and Ocean Engine.

There are many similar examples: the continuous evolution of the Code Brain ecosystem, the emerging value of IT and data capabilities, and the fundraising team's work in driving LP-portfolio company interaction and cooperation. The sustained iteration of organizational strength keeps Source Code's overall operation flowing smoothly and vibrantly, with entrepreneurs and investors alike sensing the firm's unceasing innovation and evolution.

With the new fund's close, Source Code Capital will continue its commitment to standing alongside resilient, bold entrepreneurs, leveraging technology and capital to drive commercial transformation and create enduring, real value. Yi Cao said: "Whether in technology or commerce, the underlying purpose is to liberate people — to make people freer, to make their time more valuable. The outstanding entrepreneurs and great companies we invest in are all making life better, commerce smarter, humanity freer, and existence richer and more meaningful. This is the profound value we create together."