- Source Code Capital, a ByteDance investor, plans a $300M AI fund.
- The move comes amid a 40% drop in China’s VC activity.
- TikTok faces US regulatory challenges and a potential ban.
TikTok investor’s got a brand new bag
Source Code Capital, a prominent investor in ByteDance, TikTok’s parent company, is preparing to launch a $300 million AI-focused venture fund.
This marks the firm’s first significant investment effort since 2021, according to Bloomberg sources.
The exact amount may change, but the move is noteworthy given the 40% year-on-year decline in China’s VC activity during the first quarter of 2024.
AI, the new black
Source Code Capital’s fundraising could signal a renewed investor interest in China, particularly in the AI sector.
Founded by ex-Sequoia China investor Cao Yi, the firm manages approximately $5 billion across its yuan and dollar funds. In addition to ByteDance, the firm has invested in companies such as Meituan, a food delivery platform, and Niu, an electric scooter manufacturer.
The firm’s long-standing support for ByteDance began when Cao met founder Zhang Yiming in 2012, leading to a $5 million investment. However, returns have been limited due to the absence of an IPO from the tech giant.
Moreover, TikTok faces regulatory challenges in the US, a potential ban, which has prompted legal action from TikTok and ByteDance, citing First Amendment free speech rights violations.
To read the original article: https://www.techinasia.com/prominent-bytedance-investor-preps-300m-aicentered-fund-report
