Somerset-based Reflik, Inc. and Gridless Power, located in Collingswood, are the first companies to close on funding through the NJ CoVest Fund, the New Jersey Economic Development Authority (NJEDA) announced.
The NJ CoVest Fund is designed to bridge the funding gap between product development and commercialization. The Fund furthers the NJEDA’s ability to support businesses throughout their lifecycle.
The two emerging-stage technology companies received $250,000 in financing through the Fund.
“New Jersey once held the leading position in driving American innovation, and the time to reclaim that leadership is now,” NJEDA Chief Executive Officer (CEO) Tim Sullivan said. “NJEDA’s continuum of resources for growing businesses, from financing to networking and mentoring opportunities, is designed to support Governor Murphy’s plan for making New Jersey ‘The State of Innovation’.”
Reflik, located in Somerset, creates and maintains a talent acquisition and recruitment platform that utilizes its extensive network of recruiters and industry professionals to create efficiency for human resource professionals looking to find top candidates in less time. The funding provided to Reflik from the NJ CoVest Fund is matched to funds raised from regional angel investors. MGM Resorts, Canon, and Marsh & McLennan are among the company’s customers.
“It’s an exciting time for us at Reflik as we broaden our network to help our clients find the top-notch talent they are seeking,” Reflik Co-Founder and CEO Ashish Vachhani said. “Thanks to funding from the NJ CoVest Fund, we’ll be able to hire additional staff and expand our customer base.”
Renewable energy company Gridless Power Corporation will use funding from the NJ CoVest Fund loan to further its mission to design, manufacture, and market portable rechargeable batteries that provide vital energy to areas around the world, often in extreme conditions. Since Superstorm Sandy in 2012, when emergency personnel conducting search-and-rescue operations turned to Gridless Power’s batteries to keep their energy and communications systems running, the company has expanded to support a variety of users. These include construction projects, concerts, medical professionals, the Department of Homeland Security, and the cities of New York and Philadelphia. Gridless Power has added event management to the industries its products support.
“The time between product development and commercialization is an extremely critical time for companies like Gridless Power and we are grateful for the NJEDA’s support as we continue to grow,” Gridless Power Co-Founder and President Patrick Murphy said.
NJ CoVvest Fund financing provided to Gridless Power complements funding received from Connected VC and an angel syndicate including members from the Investors’ Circle-Social Venture Network.
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. No payments are required on the notes for seven years to allow companies sufficient time to grow. With a total funding pool of $3 million, eligible technology companies can receive investments ranging from $100,000 to $250,000. NJ CoVest funds feature three percent interest and 10-year maturity, with no payments due for the first seven years.
Both Reflik and Gridless Power are past participants in the NJEDA’s New Jersey Founders & Funders events. Hosted semi-annually by the NJEDA, New Jersey Founders & Funders connects early-stage technology and life sciences companies with investors in “speed dating” sessions to discuss strategies, business models, and funding opportunities with potential investors.
To access more business news, visit NJB News Now.Related Articles: