EmployStream Raises $1 Million in Funding
Investments from JumpStart, North Coast Angel Fund and Others Will Help Cleveland SaaS Company Ramp Up Product Development and Expand Sales and Marketing Efforts
EmployStream, a SaaS company that helps high-volume employers streamline their new hire onboarding process, has raised $1 million in a funding round led by JumpStart Inc. and North Coast Angel Fund (NCAF). Each organization invested $250,000 in the Cleveland-based company, with angel investors—including individual NCAF angels—adding the remaining amount. Mike Marchetti from JumpStart and Alan Brennerfrom NCAF will join the EmployStream Board of Directors.
EmployStream, a Cleveland-based SaaS company helping high-volume employers streamline their new hire onboarding process, has raised $1 million in a funding round led by JumpStart Inc. and North Coast Angel Fund (NCAF). JumpStart’s investment comes from a special carve-out of their $10 million Evergreen Fund, The Health-Tech Corridor Attraction Fund, which focuses specifically on investing in companies that relocate to Cleveland’s burgeoning Health-Tech Corridor.
“We couldn’t be more excited about how this round came together,” said EmployStream CEO Gerald Hetrick. “JumpStart, NCAF and an awesome group of local angel investors believe in us and we are anxious to prove them right. Their investment will allow us to ramp up product development, sales and marketing to attack our market opportunity head on.”
JumpStart’s $250,000 investment in EmployStream is the second investment from The Health-Tech Corridor Attraction Fund, a special carve-out of the $10 million JumpStart Evergreen Fund focused specifically on investing in companies that relocate to Cleveland’s burgeoning Health-Tech Corridor (HTC).
EmployStream’s move to MidTown Cleveland will make them one of more than 180 tech companies located in the HTC—a rapidly growing 1,600-acre district that links Downtown Cleveland to University Circle on the city’s east side.
“A location in the Health-Tech Corridor gives companies easy access to Cleveland’s world-class medical and higher education institutions,” said HTC Director Jeff Epstein. “Companies can collaborate with researchers at the universities and hospitals and have convenient access to a talent pool of more than 50,000 students. Early stage companies can take advantage of a large cluster of entrepreneur support organizations as well as business incubators and accelerators. The district also has an abundance of affordable and unique lab and office spaces that are ideal for startup and scaleup health-tech and high-tech companies.”
“We want to do something special and we’ve been inspired by the revival of Cleveland and the midwestern spirit,” added Hetrick. “This is particularly apparent in the growth-oriented energy of the Health Tech Corridor. It was a no-brainer to plant ourselves in MidTown Cleveland and be part of something big.”
Founded in 2014, EmployStream was developed to serve the unique needs and compliance concerns of high-volume, high-turnover employers, including temporary and contract staffing agencies. The traditional process of recruiting and hiring new employees is lengthy, disruptive and often cumbersome for these types of organizations. EmployStream’s flexible hiring automation platform simplifies the entire hiring process, completely eliminates paper-based tasks, significantly reduces hiring costs and improves each candidate’s experience.
“We are incredibly excited to partner with Gerald and his team,” said Rem Harris, JumpStart’s senior partner in charge of investing. “EmployStream has created an exceptional product/market fit and is particularly in-tune with its clients’ needs, both of which are strong indicators that the company is well-positioned to experience rapid growth, while continuing to drive significant value to its customers.”
JumpStart’s Evergreen Fund invests seed capital in high-potential companies across the 21 counties of Northeast Ohio. To date, the fund has supported 83 portfolio companies. The Evergreen Fund also contains a special $2 million carve-out dedicated to providing financial capital for businesses that meet the Evergreen Fund investment criteria and relocate to the HTC. This “Health-Tech Corridor Attraction Fund” is supported by the City of Cleveland, the Cleveland Foundation and the Ohio Third Frontier.
EMPLOYSTREAM helps high-volume employers eliminate costly mistakes, expenses and delays from their new hire onboarding process. For more information, visit www.employstream.com and follow @EmployStream on Twitter.
JUMPSTART INC. unlocks the full potential of diverse and ambitious entrepreneurs to economically transform entire communities. For more information, visit www.jumpstartinc.org and follow @JumpStartInc on Twitter.
NORTH COAST ANGEL FUND is comprised of over 200 of the region’s leading investors, entrepreneurs and business people. Since 2007, NCAF has invested in 45 Ohio-based, early-stage companies that have gone on to raise over $500Min capital and employ nearly 1,000 people. For more information, visit www.northcoastangelfund.com.
THE CLEVELAND HEALTH-TECH CORRIDOR connects Cleveland’s vibrant Downtown to its cultural hub of University Circle, offering companies access to everything they need to grow and thrive. For more information, visit www.healthtechcorridor.com and follow @CleveHealthTech on Twitter.
THE CITY OF CLEVELAND DEPARTMENT OF ECONOMIC DEVELOPMENT enhances the lives of the citizens of Cleveland by catalyzing investment, development and growth in the community, ensuring a vibrant economic future for the City. For more information, visit www.rethinkcleveland.org and follow @CLE_EconDev on Twitter.
THE CITY OF CLEVELAND is committed to improving the quality of life of its residents by strengthening neighborhoods, delivering superior services, embracing diversity and making Cleveland a desirable, safe city in which to live, work and play. For more information, visit www.city.cleveland.oh.us and follow @cityofcleveland on Twitter and City of Clevelandon Facebook.