Reflik, Inc. First to Receive Support from NJ CoVest Fund
Financing Approved to Support Growth of Early-Stage Companies
TRENTON, N.J. (October 12, 2017) – The Board of the New Jersey Economic Development Authority (EDA) today approved the first investment under the NJ CoVest Fund for Somerset-based Reflik, Inc. Launched in August, the NJ CoVest Fund is designed to fill the funding gap that occurs between product development and commercial expansion.
Founded in 2014, Reflik crowdsources talent, utilizing its extensive network of recruiters and industry professionals to create efficiency for human resource professionals looking to find top candidates in less time. To date, Reflik has built a growing, nationwide community of more than 13,000 individual recruiters and staffing agencies, and cites growth for the first half of 2017 at a rate of 1,200 recruiters added per month. To support continued growth, the company is focused on expanding its marketing and business development efforts.
“The NJ CoVest Fund is a perfect fit for successful start-ups like Reflik that are ready to advance to the next level, but need some support,” EDA Chief Executive Officer Melissa Orsen said. “Today’s approval is an important milestone as it validates the ability of the Fund to meet the needs of New Jersey’s emerging companies.”
The NJ CoVest Fund provides funding to New Jersey-based early-stage technology companies in the form of convertible notes with warrants, requiring a negative pledge and springing lien on protected intellectual property. Companies can receive investments ranging from $100,000 to $250,000. Reflik was approved for up to $250,000 and will use the funds to extend the reach of its recruitment network and its base of corporate customers. The company also expects to grow its salesforce from two to six over the next 18 months. The NJ CoVest fund features three percent fixed interest and 10-year maturity, with no payments due for the first seven years.
“The market has been extraordinarily receptive to Reflik’s Talent Crowdsourcing Platform and we look forward to continuing our strong growth trajectory,” said Reflik Chief Executive Officer Ashish Vachhani. “The note from the NJ CoVest Fund will provide us with the cash flow needed to expand our lead generation and sales efforts and staff.”
Vachhani noted that individual recruiters and staffing firms benefit from Reflik’s free access to hundreds of open positions, and the ability to start referring qualified candidates immediately, without the need to be approved by hiring companies as a vendor. Each position is associated with a monetary reward for recruiters, averaging $8,000. Recruiters also have the flexibility to recruit whenever they have time and they have the freedom to choose positions and clients. With a click of a button, users can also share a trackable link across all digital channels directly from the platform. They can receive the referral fee if someone who clicks on that trackable link is hired.
The NJ CoVest Fund aligns with the EDA’s ongoing strategy to stimulate the growth of New Jersey’s innovation economy and drive commercialization of pioneering technology within the State. Among its myriad resources, the EDA has a long history of helping increase available capital for emerging companies by investing as a limited partner in venture capital firms that invest in New Jersey-based enterprises. To date, EDA has committed over $48 million to 14 venture capital funds since 1999. Cumulatively, these partner funds invested approximately six times the EDA’s investment into more than 60 New Jersey early-stage technology and life science companies. Including other third-party investors, companies in the EDA venture fund portfolio received $2.3 billion of funding and employed almost 2,000 full time employees as of December 31, 2016.
A complete list of NJ CoVest Fund program guidelines and company requirements and an application can be found at www.njeda.com/njcovest.
To learn more about the resources available to New Jersey’s emerging technology and life sciences companies, visit www.njeda.com/tls and follow @NJEDATech on Twitter and LinkedIn.
Reflik is a talent crowdsourcing platform that finds the perfect ready-to-hire candidates in 10 days or less, through its extensive community of thousands of recruiters. Hundreds of companies use Reflik to hire top talent, including Fortune 500 companies such as Canon, Marsh & McLennan, and General Dynamics. CIOReview selected Reflik as one of the 20 Most Promising HR Technology Solution Providers 2016. Reflik has been featured in Forbes, NJBIZ, CBS, TechRepublic, and more. Learn more at Reflik.com