5Y Capital
About 5Y Capital
5Y Capital is a Shanghai-based venture capital firm founded in 2008. It was previously known as Morningside Venture Capital before it rebranded in October 2020.
Ken Shi and Richard Liu founded the firm in 2008 as Morningside Venture Capital. Before that, both worked as investment professionals at Morningside Group, the Chan family office. The firm reports about USD 5 billion in USD and RMB funds, a figure dated March 2021. Its limited partners include sovereign wealth funds, family offices, endowments and pensions. According to a third-party fund database, its Evolution Fund III closed in 2024 at $800M. Startup Intros reports that it raised over $2 billion from limited partners in 2021. Crunchbase lists Shi and Liu as founding partners. Other partners listed by third-party sources include Fisher Zhang, Elwin Yuan, Levi Liu, Yu Cheng and Ted Jing. These sources do not say which partners lead AI deals, so check the firm's site before choosing a contact.
AI is one of several sectors the firm covers, alongside life sciences, consumer and enterprise software. VCSheet describes its approach as backing founders with unconventional visions, and notes a move into AI infrastructure. In China it has backed large model developers. Press reports show 5Y Capital among the early investors in Moonshot AI. It also took part in StepFun's rounds, including follow-on money in the January 2026 Series B, reported at over $718 million. NFX Signal tags its partners as investors in AI at Seed, Series A and Series B.
The firm does not publish check sizes. NFX Signal, a third-party source, lists a range of $100K to $5.0M with a $1.5M sweet spot for its early-stage partners. Tracxn says it mainly enters at Series A. Its AI deals also include later rounds, such as the StepFun and Moonshot rounds above. Treat these figures as estimates, not firm policy.
- Moonshot AI: Chinese large model developer. Press reports a $700 million round backed by Alibaba, Tencent and 5Y Capital. 5Y is reported to have invested since the angel round. The Lounge deals desk lists a growth round with an undisclosed amount.
- StepFun: Shanghai foundation model company. 5Y Capital is a named investor, and its USD funds joined the second round. The Lounge deals desk lists a $2.5B venture round in May 2026.
- Dify.AI: enterprise AI workflow platform. The Lounge deals desk lists a $30M seed round in March 2026. Public sources reviewed do not confirm 5Y's role in this round.
- en.wikipedia.org/wiki/5Y_Capital
- crunchbase.com/organization/morningsidevc
- signal.nfx.com/firms/5y-capital
- hottub.vc/firms/5y-capital
- startupintros.com/orgs/5y-capital
- vcsheet.com/fund/5y-capital
- tracxn.com/d/venture-capital/5y-capital/**oPaSl6DuujcNuvNdNJDMdHmP-vm5
- kr-asia.com/moonshot-ai-sparks-investor-frenzy-as-z-ai-and-minimax-res
Investing activity
5Y Capital appears in 3 AI deals tracked by the AI Lounge deals desk, rounds totalling $2.53B. The rounds are mostly Growth and Seed, with a median round size of $2.5B. The most recent are Moonshot AI (Growth, Undisclosed, Oct 2026), StepFun (Venture round, $2.5B, May 2026) and Dify.AI (Seed, $30M, Mar 2026).
5Y Capital most often invests alongside Tencent, Alibaba, Pudong Venture Capital and Qiming Venture Partners, and the companies it backs on AI Lounge are mostly in Frontier AI models, Natural Language Processing and AI.
Deals
Frequently asked questions about 5Y Capital
Who founded 5Y Capital?
Ken Shi and Richard Liu founded it in 2008 as Morningside Venture Capital. Both previously worked at Morningside Group, the Chan family office.
How much money does 5Y Capital manage?
The firm reports about USD 5 billion in USD and RMB funds, as of March 2021. A third-party database lists its Evolution Fund III at $800M, closed in 2024.
What AI companies has 5Y Capital invested in?
Reported AI investments include Moonshot AI and StepFun. Dify.AI appears on the Lounge deals desk with a $30M seed round in March 2026.
What check size does 5Y Capital write for AI startups?
It publishes no official figure. NFX Signal lists a $100K to $5.0M range with a $1.5M sweet spot for its early-stage partners. Tracxn says it mainly invests at Series A.
Does 5Y Capital invest outside China?
Yes. Its portfolio includes US biotech companies such as DeepCure and Aureka Biotechnologies. Its AI deals reviewed here are mostly China-based.
Where is 5Y Capital based?
5Y Capital is based in Shanghai, Shanghai, China.
What stage does 5Y Capital invest at?
In the rounds tracked on AI Lounge, 5Y Capital has invested at Growth and Seed, with a median round of $2.5B.
Who does 5Y Capital co-invest with?
5Y Capital's most frequent co-investors on AI Lounge are Tencent (2 deals), Alibaba (1 deal), Pudong Venture Capital (1 deal), Qiming Venture Partners (1 deal) and China Life Private Equity (1 deal).
How can founders reach 5Y Capital?
Founders on AI Lounge can see 5Y Capital's contact details in AI Investor Contacts (paid plans), check for a warm introduction through members who worked with the firm under Warm Paths, and add 5Y Capital to their Investor Pipeline to track the conversation.