Micro Connect
Micro Connect funds micro businesses through daily revenue contracts with blockchain trading.
Micro Connect is a fintech platform that creates Daily Revenue Contracts (DRCs) as a new asset class, enabling investors to provide capital to micro and small businesses in exchange for daily revenue sharing. The platform uses its proprietary Automated Repayment Mechanism (ARM) to securely capture revenue data and split cash flows in real-time, and the blockchain-enabled Authenticated Rights Market (Rights ARM) to facilitate transparent trading of DRC portfolios. As of December 2024, Micro Connect has funded over 13,000 businesses across 200 mainland Chinese cities, positioning itself as a blue ocean alternative to traditional Wall Street financing.
Problem solved
Micro and small businesses lack access to affordable capital, while investors lack transparent, diversified exposure to quality SMB revenue streams.
Target customer
Micro and small business owners in China seeking alternative financing; institutional and retail investors seeking granular exposure to SMB cash flows.
Founders
C
Charles Li Xiaojia
Co-founder & Chairman
Former Chief Executive of Hong Kong Exchanges and Clearing Limited (HKEX), retired end of 2020.
G
Gary Zhang
Co-founder, Vice Chairman & CEO
30+ years in China and international finance; founded Oriental Patron Financial Group in 1993; holds Master's in Economics from Peking University.
Funding history
Series A
$50M
November 1, 2021
Led by Unknown
· Unknown
Series B
$70M
March 21, 2022
Led by Sequoia China
· ABC International, Adrian Cheng, Ausvic Capital, Chuang's Capital, Dara Holdings, Horizons Ventures, Keywise ARCHina Fund, Lenovo Capital, Vectr Fintech
Series C
$458M
Unknown (valuation $1.7B)
Led by Baillie Gifford
· Sequoia China, Lenovo Capital, Vectr Fintech, Dara Holdings
Series C Extension
Undisclosed
November 15, 2024
Led by Jane Street
· Unknown
Total raised:
$653M
Industries
Pricing
Not publicly available in standardized form. Revenue-sharing ratio varies by contract; investors receive 1-2% of store revenue post-principal repayment. Maximum daily revenue pledge capped at 49% of free cash flow margin.
Notable customers
Mr. Judy (100+ locations, $2.74M financed), 688+ brands/chains/franchisers across 13,000 businesses
Integrations
HSBC (asset-backed loan facility, $200M), Choco Up (strategic partnership for revenue-based financing)
Tech stack
Swiper (JavaScript libraries)
LazySizes (JavaScript libraries)
jQuery UI (JavaScript libraries)
jQuery Migrate (JavaScript libraries)
jQuery (JavaScript libraries)
core-js (JavaScript libraries)
Bootstrap (UI frameworks)
Webpack
Open Graph
Module Federation
HTTP/3
WordPress (Blogs)
MonsterInsights (Analytics)
Baidu Analytics (Analytics)
Google Analytics (Analytics)
reCAPTCHA (Security)
Twitter Emoji (Font scripts)
Google Font API (Font scripts)
PHP (Programming languages)
jsDelivr (CDN)
Cloudflare (CDN)
MySQL (Databases)
Elementor (Page builders)
Yoast SEO (SEO)
Contact Form 7 (WordPress plugins)
WPML (WordPress plugins)
Website
Competitors
Yirendai
China-based peer-to-peer lending platform; lacks Micro Connect's DRC asset class and blockchain trading infrastructure.
AngelHub
Focuses on traditional equity crowdfunding rather than revenue-based financing contracts.
BnkToTheFuture
Global alternative investment platform; lacks focus on micro-business SMB financing.
Zhijin.VC
Venture capital platform; does not offer daily revenue contracts or automated repayment mechanisms.
Why this matters: Micro Connect has created a new asset class (DRCs) for SMB financing backed by $653M in funding and partnerships with HSBC, positioning itself as a fintech infrastructure layer for underserved micro-business financing in Asia. Its blockchain-enabled secondary market for DRCs and real-time automated repayment system represent novel infrastructure solving historically illiquid and opaque SMB lending.
Best for: Institutional and retail investors seeking diversified, transparent exposure to quality micro-business revenue streams with real-time repayment automation.
Use cases
Alternative Investment Portfolio Diversification
Institutional investors can build diversified portfolios of DRCs across thousands of micro-businesses, reducing concentration risk. The blockchain-enabled Rights ARM allows transparent trading and clearing of these contracts, providing liquidity typically unavailable in SMB lending.
Franchise Chain Growth Financing
Multi-unit restaurant and retail chains (e.g., Mr. Judy) can finance rapid expansion by signing DRCs with Micro Connect rather than traditional debt. Daily revenue-sharing aligns investor returns with business performance while preserving ownership and equity structure.
Real-Time Automated Capital Recovery
The ARM infrastructure automatically captures daily revenue data from invested stores and splits cash flows, eliminating manual collection and payment processing. Investors receive real-time transparency on store performance and automatic daily settlements.
Alternatives
Traditional Bank Lending
Requires collateral and personal guarantees; slower approval; unavailable to many micro-businesses; no investor diversification across portfolio.
Equity Crowdfunding Platforms
Requires equity dilution from business owners; less suitable for stable micro-businesses; lacks daily revenue-sharing alignment model.
Revenue-Based Financing (RBF) Platforms
Less institutionalized; lack transparent trading infrastructure; smaller investor base; Micro Connect's blockchain Rights ARM enables secondary market liquidity.
FAQ
What does Micro Connect do? +
Micro Connect creates Daily Revenue Contracts (DRCs) that connect investors with micro and small businesses. Investors provide capital and receive a percentage of daily business revenue until principal is repaid, then 1-2% ongoing. The platform uses automated technology (ARM) to collect revenue and manage payments, and blockchain infrastructure (Rights ARM) to enable transparent trading of DRC portfolios.
How much does Micro Connect cost? +
Pricing is not publicly standardized. Revenue-sharing ratios vary by individual DRC contract, with daily revenue pledges capped at 49% of free cash flow margin. Post-repayment, investors receive 1-2% of store revenue. Investors should contact Micro Connect for specific terms based on their investment profile.
What are alternatives to Micro Connect? +
Alternatives include traditional bank lending (slower, collateral-dependent), equity crowdfunding platforms like AngelHub (requires equity dilution), general RBF platforms like Choco Up (less institutionalized), and peer-to-peer lenders like Yirendai (lacks DRC structure and blockchain trading).
Who uses Micro Connect? +
Institutional and retail investors seeking SMB exposure; micro and small business owners needing growth capital without equity dilution. Notable customers include 100+ Mr. Judy restaurant locations and 688+ brands across 13,000+ funded businesses as of December 2024.
How does Micro Connect compare to traditional SMB lending? +
Unlike traditional bank loans requiring collateral and personal guarantees, Micro Connect uses revenue-sharing DRCs aligned with business performance. The platform provides institutional investors with transparent, diversified portfolio exposure through blockchain trading, while giving SMBs access to capital without equity dilution or traditional debt covenants.
Tags
revenue-based financing
SMB lending
daily revenue contracts
blockchain
fintech infrastructure
alternative finance
asset-backed securities