Source Code Capital, a Beijing-based VC firm and early investor in ByteDance, has reduced its target for a new US-dollar fund to US$150 million from an initial goal of $300 million.

This decision follows lower-than-expected interest from investors, according to sources familiar with the situation.

The firm has not launched a major investment vehicle since early 2021, and the new target, led by partner Samuel Huang, may still change.

This adjustment reflects investor caution in China’s tech sector amid regulatory crackdown and economic challenges.

US-dollar venture capital funds in China raised US$1.3 billion from 11 funds in 2024, a sharp decline from 2021 when 62 funds raised US$17.2 billion.

Interest in AI and semiconductors is growing, backed by Beijing, but geopolitical tensions keep US investors cautious.

A spokesperson for Source Code Capital declined to comment.