In the 10th year of entering the venture capital industry, Cao Yi founded Source Code Capital. This new VC has just raised the first phase of fund of $ 100 million. LPs are the active entrepreneurs or investors, including Sequoia Capital, Meituan.com CEO Wang Xing, toutiao.com CEO Zhang Yiming, as well as nearly 20 CEOs of new $ 1 billion-class companies, BAT and Qihoo executives, famous Business Angel and Hedge Fund partners.
Cao Yi said to CYzone, the term “Source Code” is his understanding and vision of the new fund. He is full of passion for the information industry represented by Code, and believes that its influence on human is unprecedented, and that in the future it will continue to produce a profound change in our lives. Source Code will focus on the business model of changing the real-life needs through information industry.
If determining whether a company is worth investing from the source, it depends on whether the industry represents the future trend. Source Code Capital pursues breakthrough. LOGO of Source Code Capital is shaped like water source, which means that they will be the most valuable business partner of start-up companies in the core early investment field.
The capital attracted the attention from the venture capital circle, in addition to the new wave of VC aggressive background, mainly because Cao Yi got good experience and industry reputation on Sequoia Capital's large platform. In the future, the new fund will focus on early TMT investments, containing the fields of O2O, Internet banking, the new social contact, entertainment, enterprise IT.
Cao Yi born in 1980s entered the VC industry during the school. If considering he was previously Ali's co-founder, it would be easier for him to understand the current entrepreneurs born in 1980s and 1990s. Naturally, entrepreneurs feel very relaxed to communicate with him. This could be considered a common trait of the new generation of small Vs.
In this new VC, Source Code Capital hopes to form a brand gene with Internet companies' investment philosophy of light play and quick decision-making. Cao Yi said, "The core needs of the early entrepreneurs are money, its added value and rapid availability." If you have a project and talk with Cao Yi, you will receive feedback within one week. Even recently he had just completed an investment of "giving Termsheet in 30 minutes".
Of course, behind the "30 Minutes" are Cao Yi and the team's deep understanding of the invested project industry. Under the auspices of light play and quick decision-making, Source Code has invested more than a dozen companies in a short term, including domestic famous anonymous social application wumii.com; Internet financial company Qufenqi with two rounds of financing and college students as the main customer group; China's largest P2P platform PP car rental; travel discount platform haiwan.com; third-party e-mail sending service platform SendCloud that assists developers in completing the task of e-mail sending and tracking; global guide family hotel booking platform xianlvke.com.
In determining whether a company or product has investment value, he has his own logic. In investment in wumii.com, first, he would take a long time to find the life prototype with the founder. Cao Yi said that the most important thing of the Internet at the current phase is to "move", that is to digitize the real world and move it onto the Internet. Investors often ask: "What is the real basis of your Internet applications?" The real-life scenario of wumii is gossip, whisper or a small piece of paper. Cao Yi thinks the demand is sufficient to support a market.
Second, how to cut into the market, and what the future products will look like, and how to achieve the middle process; many entrepreneurs Cao Yi contacted are often hard to have all these elements. Wumii's viral effect at the beginning is very significant, helping it to accumulate the initial users. In the future it will seek a breakthrough in the information flow advertising even transaction-level. Cao Yi feel their ability of product evolution, because he will have new ideas when chatting with entrepreneurs every time.
Instead, Cao Yi less concerned about competition. In his opinion, any new products don't have to consider the competition. "It is very difficult to grasp this point. If you grasp, others are not easy to follow up. First, others do not experience the exploration process, or they would take the time to go through. Second, if he does not take this step, the acceleration of the subsequent evolution is less fast than you. Followers are not very clear how to follow up."
However, if several people do one thing at the same time, Cao Yi will consider whose understanding for this matter is deeper and whose determination is even greater. In case of the second venture, his tendency will be more pronounced.
He admitted that he preferred the second entrepreneurs who are more experienced than the first entrepreneurs. Second, Cao Yi values entrepreneurs with the ability to think clearly. "People with clear thinking usually have product or technology background, and they have more chance to bring out a company with long-term value. Some people with sales backgrounds have very strong explosive force, but once they can't think clearly, the product evolution ability is limited.
However, Cao Yi who is very tolerant and never sets up a blacklist will mobilize resources around to help entrepreneurs make up for deficiencies. Source Code Capital set up an internal closed sharing mechanism and organized "Code Class", the main members of which are Wang Xing, Zhang Yiming, and other high-growth companies' CEO. They will regularly communicate with all invested companies of Source Code Capital to help them solve practical problems encountered in the entrepreneurial process. Source Code's important manifestation of providing the subsequent value-added services is to bring the invested companies into the core contact circle of network.