RecyclingBank has received $13.1 million in a first-round venture-capital financing from RRE Ventures LLC and Sigma Partners.
The Philadelphia-based company plans to use the money to expand the number of geographic areas in which it offers its program, which rewards consumers for recycling providing them with RecycleBank dollars they can use to receive discounts from participating retailers and product manufacturers.
CEO and co-founder Ron Gonen says they are in negotiations with a number of cities now, including
“We are extremely pleased to do this deal with such strong, forward looking partners,” says Gonen. “The response from the investment was excellent and we felt that the unique attributes of RRE and Sigma were the perfect match to help RecycleBank scale. They recognized that RecycleBank has developed a model that genuinely benefits all the participants—both locally and nationally.”
Gonen says they have developed a number of strategic relations with companies like Coca-Cola and Timberland, while also working with local retailers. On the recycling end, RecycleBank is being supported by such companies as Cassella Waste Systems Inc. and Republic Services Inc.
“With its unique business solution to one of the greatest environmental challenges facing cities across the country, RecycleBank is carving new territory with its business-friendly recycling model,” says Robert Davoli, managing director of sigma Partners. “By providing the necessary resources we hope to extend its offering to more and larger cities, sponsors and homeowners across the country.”
The company receives funding from money saved by municipalities participating in the program. “It is essentially free,” Gonen says.
RecycleBank was founded with seed money from