Early ByteDance Backer Plans One of China’s Biggest New VC Funds

Source Code Capital, among the earliest backers of TikTok owner ByteDance Ltd., is raising one of China’s largest venture funds as startups begin to draw renewed interest during the AI boom.

The Beijing-based investor plans to raise $300 million for a new US-dollar fund led by partner Samuel Huang, according to people familiar with the matter. If successful, that will mark its first major investment vehicle since early 2021. The target is preliminary, however, and could change, the people said, asking not to be named.

The envisioned vehicle — while small compared to the multibillion-dollar funds of the pre-Covid ...