A web-recruitment software company has expanded its workforce from two to 12 within six months after receiving £720,000 in equity funding.
RecruitmentForce has used equity investment to successfully grow its business following three rounds of investment from Northstar Ventures and additional funding from private investors.
Initial investments allowed the company, started by managing director Eldon Jobe and product director Carl Holst-Roness, to produce its cloud-based recruitment software and then ramp up sales. The business now licenses its products to clients across Europe, the US, Asia and Australasia as well as the UK.
Jobe said: “We needed support building the company when we had nothing to sell and then when we were selling and were in a cash negative situation.
“Being invited to Northstar’s events means I have been introduced to people both in the North East and across the UK. My business network has grown massively and the people I can turn to and talk to, has grown.”
The Newcastle firm received an investment of £200,000 in its latest round of funding from the Finance for Business North East Accelerator Fund, the fund having already invested £200,000 alongside £25,000 from private investors earlier last year.
The injection of capital helped the business to expand its workforce to 12 within six months and the firm expects to hire a further 18 staff by the end of the year. It has also allowed RecruitmentForce to move to larger premises, buy new equipment and boost its marketing efforts.
Rebecca Crawford, investment manager at Northstar, said: “RecruitmentForce is an excellent example of the advantages of using equity funding. By raising equity funding, the company was able to concentrate on developing its products and accelerate the growth of the business without the short-term pressure of the need to service debt.”