As the world steadily emerges from the shadow of the pandemic, it’s not the multinational corporations but the small and micro businesses that are leading the charge in economic recovery. At the forefront of this charge is a two-year-old fintech startup, Micro Connect.
A New Dawn in Fintech: Micro Connect’s Story
In 2021, Hong Kong-based Micro Connect was born with a clear vision: to facilitate global institutional investments in micro and small businesses across mainland China. The brainchild of Charles Li and a team of visionary entrepreneurs, Micro Connect has since been a beacon of hope for small businesses looking for a financial lifeline.
Micro Connect’s concept is unique. It provides an avenue for investors to trade in an all-new asset class known as Daily Revenue Obligations (DROs). Enabled by blockchain technology, DROs allow businesses to garner fresh capital without being burdened by debt, while offering investors the opportunity to steadily accumulate their returns.
A Successful Journey: Micro Connect’s Funding Milestones
Micro Connect’s journey to success has been nothing short of impressive. In its recent Series C funding round, the startup secured a whopping $458 million, with its total equity raised reaching $578 million. This has catapulted the startup to a valuation of $1.7 billion.
The funding round saw participation from new and returning investors, including Scottish investment firm Baillie Gifford, Sequoia China, Lenovo Capital, Vectr Fintech, and Dara Holdings. The backing from these big names is testament to Micro Connect’s potential and the faith the market has in its mission.
The Power of Partnership: Collaborations and Endorsements
From its inception, Micro Connect has attracted a diverse array of investors from Hong Kong and mainland China. Among its backers are ABC International, Chuang’s Capital, Horizons Ventures spearheaded by Hong Kong’s richest man Li Ka-shing, and Adrian Cheng, CEO of real estate giant New World Development.
These strategic partnerships have not only provided financial support but also brought invaluable wisdom and insights that have propelled Micro Connect towards its vision.
Making Waves Across Mainland China
Micro Connect’s impact is evident across mainland China. To date, the startup has invested in over 9,000 brick-and-mortar businesses spread across 198 cities. These businesses span numerous industries including retail, food and beverages, services, and culture and sports.
The company expects to have 30,000 businesses listed on its platform by year end. This rapid growth is indicative of the startup’s potential to revolutionize China’s SME landscape.
The Macro Impact of Micro Business
Micro and small businesses are the backbone of China’s economy. In 2021, they contributed 60% of China’s GDP and around 80% of the country’s employment. But these businesses were hit hard by the pandemic, with widespread lockdowns bringing the economy to a standstill.
As China cautiously reopens its borders, micro and small businesses are being hailed as a driving force in the country’s recovery. Micro Connect, with their innovative approach to investment, is right at the helm of this resurgence.
The Road Ahead: Micro Connect’s Future Prospects
With the backing of influential investors and a successful business model, Micro Connect’s future looks promising. The startup’s unique approach to investing in small businesses will continue to play a significant role in the economic recovery post-pandemic.
Conclusion: A Triumph in Empowering Small Businesses
Micro Connect’s journey has been a triumph in empowering small businesses. With its innovative investment model and strategic partnerships, the fintech startup has shown that it’s possible to marry profitability with social impact. As it continues to grow and make waves in China’s economy, Micro Connect is undoubtedly an example of how fintech can lead the charge in economic recovery and sustainable growth.