Micro Connect Raises US$70M Series B Funding As New Market Infrastructure Platform Completes First 100 Micro And Small Business Investments In China

HONG KONG, March 31, 2022 /PRNewswire/ — Micro Connect, the market infrastructure platform that connects global capital with from China base economy, announced that it has completed a capital increase of 70 million US dollars in its Series B funding round, with the participation of Series A investor Sequoia China, and new investors, including ABC International, Adrian Cheng, Ausvic Capital, Chuang’s Capital, Dara Holdings, Horizons Ventures, Keywise ARCHina Fund, Lenovo Capital, Vectr Fintech and others. The oversubscribed round brings the total Micro Connect funds raised to date to 120 million US dollarsand validates Micro Connect’s long-term vision of developing a new and more inclusive financial market with a new asset class.

In just over a year since its founding in early 2021, Micro Connect has reached several important milestones:

  • operational momentum – Micro Connect has grown its workforce to nearly 100 professionals, with a field presence in mainland China to strengthen its investment sourcing, capital deployment and technology capabilities, and a capital markets team in Hong Kong serving global investors.

  • Completion of the proof of concept – To date, the Micro Connect platform has invested in more than 100 micro and small businesses, covering 15 subsectors in the food and beverage, retail, service and culture, and sports industries in more than 10 provinces/municipalities in China. Completion of “Plan 100” represents a validation of Micro Connect’s innovative model of combining chain store partnerships with revenue-driven investments, from targeting, information discovery, daily and digital revenue collection through payment mechanism automated, to cross-border capital. deployment and distribution of returns to offshore investors. It lays a solid foundation for the platform to expand its portfolio to include more than 1,000 investments by the end of 2022 and 10,000 by 2023.

  • Solid investment portfolio – Micro Connect has developed a growing network of more than 100 Connect Partners, including leading consumer and franchise chains and SaaS companies, through which it has built a strong portfolio of quality investment targets at the store level.

  • Global Investor Access – Earlier this year, the Micro Connect China Fund was launched and began raising capital from global professional investors looking to participate in the growth of micro and small businesses in China.

Charles LiFounder and Chairman of Micro Connect, said, “We are delighted to welcome a distinguished group of strategic and institutional investors to our community, and look forward to working closely together to support Micro Connect in its mission to bridge the gap between investors global and from China basic economy”.

Gary ZhangFounder and Vice President of Micro Connect, said, “We are totally excited about our journey ahead, as we continue to develop the ultimate financial technology and market infrastructure to empower micro and small businesses and their owners, and make an impact in society in general.”

Micro Connect will use proceeds from the latest capital raise to scale its partner network and capital deployment capacity in the country, enhance its platform technology and further develop its market infrastructure to expand the channels through which Global investors participate in the new asset class, including funds, structured products and an exchange platform.

Following a full test of the new investment model and the gradual rollout of various market access channels for global investors over the course of 2022, Micro Connect will also introduce a data analytics platform to connect chains with stores/franchisees and advise on its expansion strategies and an information platform to offer indexing, rating and portfolio construction services to impact investors. Together, these platforms will form a new market and fundamentally change the way financial services are delivered.

About Micro Connect

Micro Connect is a new financial technology platform and market infrastructure that connects global capital with from China grassroots economy, making capital more accessible and affordable for micro and small businesses. Micro Connect has created Daily Revenue Contracts (DRC) as a new asset class for direct, granular and diversified exposure to a large number of quality micro and small companies. It has pioneered the Automated Refund Mechanism (ARM), a secure, digital way to collect investment returns with real-time transparency. It also partners with leading chain/franchises and SaaS companies (Connect Partners) to identify the best targets at scale, enabling more efficient information discovery and capital deployment. With a wealth of daily revenue data accumulated over time, Micro Connect builds AI analytics capabilities to continually uncover investment insights and optimize capital allocation decisions. Through the development of a fund investment platform, custom structuring solutions, and an exchange platform for direct trading access, Micro Connect offers efficiency and liquidity in small business investing for all types of global professional investors and offers a new alternative to impact investing.

For more information please visit microconnect.com and follow our journey on LinkedIn: Micro Connect and WeChat: Micro Connect.

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