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Today, Source Code Capital has announced the closing of a new $570 million fundraise to make early- and venture growth-stage investments in China’s “New Economy” businesses. With the completion of this successful fundraising, the total funds under management at Source Code Capital have now reached a new high, at USD $1.5 billion and RMB 3.5 billion.
On April 2, 2019, Forbes unveiled its annual Forbes Midas List, ranking top venture investors in the world. Charlie Cao Yi, Founder and Managing Partner of Source Code Capital, was once again awarded with this prestigious distinction, after his initial appearance on The Midas List in 2018. The name “Midas List” (Forbes’ annual ranking of the most prominent deal-makers in the venture industry) is an allusion to the mythological King Midas, renowned for his ability to turn anything he touched into gold. It is also known as the “Golden Touch” list. It is the apex of “the most astute venture capitalists who can earn the best-in-class returns.” In 2018, 17 Chinese investors, including Charlie Cao, were listed; in 2019, 21 Chinese investors were named to the Midas List. This is reflective of the increased recognition that Chinese investors have in the global venture capital field, as well as the growing influence of China’s innovation and New Economy start-ups in the world. In addition to being named to the esteemed Forbes “Midas List” for two consecutive years (2018 and 2019), Charlie Cao was also named a “Top 100 Venture Capitalist” by CB Insights in 2019. In 2018, he was featured as “China’s 30 Most Influential Investors” by Fortune China, and in 2017, he was on Sina’s “China Top Investors Ranking TOP25.” In 2016, he was chosen as “40 Business Elites Under 40” by Fortune China and “Angel Investor of the Year” by Chuangyebang. A 2C and 2B Portfolio Mr. Cao is a seasoned investor with over 15 years of experience in venture capital, investment management and business innovation. Under his leadership, he led the Source Code team to invest along the “Big 3” Fundamental Drivers (Internet+, AI+, and Global+) investment map, providing continuous support to entrepreneurs in the “Information Revolution” across various sub-sectors. Over the past five years, Source Code Capital led investments in nearly 150 enterprises focusing on Internet+, AI+, and Global+ (China-angle companies in the international arena). This is comprised of different sectors such as media and entertainment, consumer services, enterprise, finance, retail, transportation, housing, education, and healthcare. In addition to ByteDance, Meituan Dianping (3690.HK), Homelink, Ziroom, Qudian (NYSE: QD), RELX Technology, CHJ Automotive, Pagoda and other well-known 2C Internet+ Consumer investment examples, since 2014, Source Code Capital has also led investments in Baibu, YunQuNa, Yijiupi, Yimidida, XiaoYaoYao, Edianzu, Zhongneng United and other outstanding 2B enterprises, and supported their growth from the early stages onwards through later rounds. Patience and Dedication to Post-Investment Value Creation After five years of development, Source Code Capital has expanded its organization across three distinct functions (investment, post-investment, and operations), and nutured a team of around 60 professionals. Over the last two years, special attention was paid to deepening the organization’s post-investment capabilities. In 2018 alone, 426 post-investment actions were completed across different functions including Human Capital, Public Relations, Financial Advisory, and Policy, providing much appreciated help and insights to entrepreneurs. In 2018, Source Code Capital further released a new initiative called “Code Brain,” a platform exchange for entrepreneurs. The monthly “Code Brain” gathering brings dozens of CEOs together to improve knowledge sharing, algorithms and decision-making, as well as to share experiences and feedback. Charlie Cao calls it “systematic learning.” About Source Code Capital Source Code Capital was founded in the Spring of 2014, and since then it has devoted to becoming the partner of choice for leading entrepreneurs in today’s “Information Revolution” era with over $900 million and RMB 3 billion under management. The funds managed by trusteeship mainly come from prestigious SWFs, endowments and foundations, pensions, fund of funds, PRC central government guidance funds and state-owned enterprises. Source Code Capital insists on the significance of research and independent thinking to motivate its investments. It is focused on investing its “Big 3” fundamental drivers, which are Internet+, AI+, and Global+ (China-angle companies in the international arena), and invests along diversified sectors such as finance, enterprise, media and entertainment, consumer services, retail, transportation, housing, education, and healthcare. To date, the Source Code team has led investments in both early and growth stages in close to 150 companies. Its set of portfolio companies include: ByteDance, Meituan Dianping (3690.HK), Homelink, Qudian (NYSE: QD), Asset360, Smart Finance Group, Insnail Hospital, Magnet Finance, ABC FinTech; Yijiupi, Yimidida, XiaoYaoYao, Edianzu, Baibu, Zhongneng United, YunQuNa, Ruigushop; Pagoda, RELX Technology, Meili Inc. (Mogujie) (NYSE:MOGU), XinChao Media, Ziroom, Julive, Huizhaofang, CHJ Automotive, Che300, NIU Technologies (NASDAQ: NIU), Haifeng Education, KnowBox, Walnut Coding, Weimai, Huishoubao, Linlinyi, Linji Convenience Store; Krazybee, Zenjoy and BluePay. Source Code Capital has created “Code Class,” a strategic alliance composed of 30+ New Economy leaders in China and connected to Source Code portfolio of 150 companies. Within this inner circle, Code Class members can openly exchange and network. In addition, the Code Class ecosystem provides differentiated networks and value-adding resources to its portfolio companies.  
China’s automobile and transportation sector is undergoing a complex period of transformation. In this issue, we aim to offer our perspectives on the development of China’s auto sector and the potential new business opportunities it brings. We hereby exclusively present Source Code Research Report Issue No. 13.
Cross-border e-commerce retail is a fast-growing trillion-dollar industry. Mature markets are in the process of improving distribution and branding, while emerging markets continue to provide new investment opportunities.
As part of our Code Class, Code Brain is an integral part of Source Code Capital's post-investment services as an intimate offline event. Held once every month, Code Brain covers the most pressing topics and fields that concern entrepreneurs today. Code Brain organizers are CEOs and industry experts. Together, individuals have the ability brainstorm and discuss hot topics in an offline and intimate environment. The Code Brain program allows for the Code Class to network and receive valuable case sharing from established entrepreneurs.
OMO stands for online-merge-offline, which is when boundaries of the online and offline worlds are eliminated due to the comprehensive integration. The OMO era follows the O2O era where new investment prospects appear from the online sector’s empowerment of the offline sector. Some questions being asked include: what kind of opportunities and value depressions are the result of retail enterprises during the OMO era? Where will future breakthroughs take place? After thorough analysis, Source Code Capital exclusively presents Source Code Research Report Issue No. 10.
Dr. Hongjiang Zhang recently appeared on CGTN English Channel’s “Dialogue with Yang Rui.” Dr. Zhang engaged in a fascinating discussion with host Yang Rui on the topic of “issues that have emerged during the course of the development in the artificial intelligence (AI) sector.”
Three years into this prosperous and dynamic world of the new economy, we have just got ourselves a foothold to start. 2017 was the year of what the company called “The Year of Prominence.” It was at this third anniversary that the company achieved the success of Phase III of RMB and USD fundraising. While the Phase III RMB fund continued to attract more leading enterprises (entrepreneurs), it also received investments from national guide funds, top-grade FOFs, and mega state-owned enterprises. Like its RMB counterpart, the Phase III USD fund acquired abundant investments from many sovereign wealth funds, charity funds, pension funds, FOFs, and family foundations. A successful Phase III fundraising has always been considered a significant sign of “prominence” by a portfolio management company. We are fortunate that our diligent work helped to establish such a firm foundation.
In 2017, interest in insurance technology began to rise due to the increase in the popularity of specific industry trends. WeChat launched its “Weibao WeSure" platform in November, led by the WeSure medical insurance and WeSure car insurance products. On September 28th, ZhongAn Online Property & Casualty Insurance Co. went public in Hong Kong, resulting in its market value exceeding 100 billion RMB. The company’s subsidiary branch, ZhongAn Technology, focuses on technological research in the InsurTech area. In July, Ant Financial announced that it would reveal the technology behind its Dingsunbao, or Loss Assessment Master app, which uses artificial intelligence (AI) to assess damages and claims.
The scope of asset management in various financial institutions are steadily expanding in the wake of informatization, data integration, and risk management. Using the unique perspective of asset management, commonalities of different asset classes are made evident and mutually validated, and allows us to discover new industry opportunities. Thoroughly analyzed and written, Source Code Capital exclusively presents Source Code Research Report Issue No. 8.
The Gartner Hype Cycle is famous for successfully predicting the Internet bubble, which has been one of the most frequently cited models by entrepreneurs and investors over the past 20 years. This Cycle is also responsible for the evolution of technologies in their most simple forms, even though it was previously questioned for inaccurate predictions. Source Code Capital has engaged in deep research and analysis to better understand and interpret technological trends, as well as identify risks and opportunities. We exclusively present Source Code Research Report Issue No. 7.
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