Ex-Sequoia exec’s VC firm targets to raise $1b across two new funds

Chinese venture capital firm Source Code Capital plans to raise US$1 billion across its two funds, according to its filings with the US Securities and Exchange Commission.

The VC firm plans to secure US$420 million for its Source Code Venture Fund V and US$580 million for its Source Code Growth Fund II, without disclosing who the limited partners will be.

Source Code Capital founding partner Charlie Cao / Photo credit: Source Code Capital

The move comes after the firm closed 3.8 billion yuan (US$584.3 million) for its yuan-denominated Fund IV, which brought its total funds under management to 8.8 billion yuan (US$1.3 billion) across its yuan-denominated investment vehicles. The firm also manages US$1.5 billion of US dollar-denominated funds.

Launched in 2014, Source Code Capital invests across early and growth-stage startups. It focuses on its so-called “big 3” drivers, internet+, AI+, and global+, focusing on china companies in the international arena, according to its website.

It also invests in sectors such as media and entertainment, consumer services, enterprise, finance, retail, transportation, housing, education, and healthcare.

Some of its portfolio companies include TikTok owner ByteDance, Chinese electric vehicle manufacturer Li Auto, food delivery platform Meituan, and online real estate platform Beike Zhaofang.

The firm was founded by Charlie Cao, an investor with 15 years of experience in venture capital, investment management, entrepreneurship, and business innovation. He previously worked as vice president at Sequoia Capital and investment manager at Ceyuan Ventures.

Currency converted from Chinese yuan to US dollar: US$1 = 6.5 yuan.