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Consistent Growth Is Our Commitment

Mihai Cepoi

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Our primary target market is represented by the mid-market SaaS companies located in the US. Mid-market companies are those organizations that have between $50 million and $1 billion in annual revenues and/or 100 to 1000 employees. There are nearly 20,000 US-based mid-market tech companies that Jobful's solution is addressable. 

On average, midsize enterprises spend approximately 4.5% of their annual revenue on IT. In absolute terms, this usually equates to IT budgets between $5 million – $25 million.  

Recruiting new skilled talent is one of the most pressing challenges for these companies but at the same time might be the best weapon to capitalize on technological change. 

In a recent study run by Deloitte, most of the top companies' tech leaders agreed to the statement that hiring for tech abilities and reskilling are the strategies paying the most significant returns in the race for talent. 

It is expected that the demand for emerging tech skills and experiences continue to grow. Over the past five years, posting volume increased 200 percent, bringing the total number of postings to around 800k for 2019.

Looking ahead, the outlook for technology employment points to a continuation of the growth trend. By 2028, projections from the US Bureau of Labor Statistics and EMSI indicate that the tech occupation employment base will grow to more than 8.8 million from 7.6 million.

Digitalization becomes a priority not only for business leaders but also for recruiting ones. The recruitment leaders often find themselves struggling in a hypercompetitive labor market and dealing with an expansion mix of hiring needs. 71 percent of recruiting organizations recruit for more specialized roles than five years ago, driving up a time to fill and drain recruiting team capacity. 

Organizations need to redesign their recruiting processes to fill critical positions for a business in digital transition quickly.

 

Financial Overview

We started operating in Romania as a B2B service, offering access to companies in Romania to our database based on yearly fee. We closed our first full year - 2019 - above 55.000 EUR in revenue and, based on our previous investment rounds, continue investing in our business growth.

This year’s COVID-19 crisis caught us off guard, with the gross burn rate above 40.000 EUR and a 300.000 EUR pipeline almost completely frozen. 

We adapted fast, pivoted to the current SaaS model, cut our gross burn rate in half and we’re now cash flow positive starting with November. We rebuilt our pipeline, both in Romania and internationally and we’re closing 2019 at 2x growth rate YoY.

The investment model we prepare for this round gives us flexibility, lowering the potential risks. We already tested the lead generation strategies and we mapped new hirings and increasing budgets to bookings (new business). This allows us to grow fast with minimum financial risks.

 

Exit Strategy

Pre-seed or angel investment is vastly used as a mechanic towards the Seed, as these investors generate returns from the valuation growth of the startup between rounds.

In finance, a convertible bond or convertible note is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. 

As an exit strategy for our investors in this round we look at liquidity events after the Seed round or at Series A. We plan our Seed round for the end of Q2 2021 which will also convert this bridge investment round. The investors can decide at that moment if they want to exit, receiving the returns from valuation difference or continue with us until the next round, receiving the compounded returns from conversion at Seed and increase in valuation to Series A. The second increase of return is subject to dilution. 

The format of our proposal for convertible loan is offering 40% discount to the Seed valuation at a 6M cap. This format provides returns on investment up to 66% at our Seed event and possibility to exit within 12 months.

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