EDA’s CoVest Fund makes first investment

Somerset-based executive recruiting firm Reflik became the first recipient of an investment from the Economic Development Authority’s CoVest Fund.Somerset-based Reflik became the first recipient of an investment from the Economic Development Authority’s CoVest Fund.

Reflik can receive up to $250,000 in funding.

The CoVest Fund provides funding to startup and early-stage tech companies by issuing convertible notes with warrants, and requires a negative pledge and springing lien on protected intellectual property. The investments range from $100,000 to $250,000. The notes typically offer a 3 percent interest rate and mature in 10 years. No payments are due for the first seven years.

Reflik was launched in 2014 and offers a talent crowdsourcing platform that guarantees to find suitable candidates for its clients in 10 days or less through its community of recruiters. It was formed in 2014, and its client list includes Canon, Marsh & McLennan and General Dynamics.

“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 president Melissa Orsen said in a prepared statement. “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.”