RecycleBank™ Inks $13.1 Million Deal with RRE Ventures and Sigma Partners

PHILADELPHIA--(BUSINESS WIRE)--RecycleBank announced today that it secured $13.1 million in Series A funding from RRE Ventures and Sigma Partners, two leading venture capital firms. RecycleBank partners with cities and businesses to reward households that recycle.

RecycleBank was founded in 2004 with the belief that environmental solutions create economic opportunities. Today, RecycleBank inspires people to become better citizens and smarter consumers by financially rewarding them for recycling at home.

“We are extremely pleased to do this deal with such strong, forward looking partners,” said Ron Gonen, RecycleBank’s CEO and co-founder. “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 of the participants – both locally and nationally.”

RecycleBank presents a business solution to an enduring environmental problem. The company provides municipalities the ability to dramatically increase recycling rates and gives its national and local marketing partners a unique and powerful set of online and offline opportunities. The household adoption rate in communities where the RecycleBank is instituted averages 80-90 percent.

“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,” said Robert Davoli, managing director of Sigma Partners. “By providing the necessary resources we hope to extend its offerings to more and larger cities, sponsors and homeowners across the country.”

RecycleBank first secured its seed money from Columbia University’s Eugene M. Lang Center for Entrepreneurship. The company took off from there and soon began to finance itself through strategic partnerships. As a result of this involvement from key partners, the company’s ownership is now composed of a consortium representing the founders, investors, recycling companies, corporate partners and representatives from the academic community.

“This funding represents a strategic agreement to help solve environmental challenges,” said Stuart Ellman, managing partner, RRE Ventures. “With this funding, RecycleBank will not only have the means to grow the company, but also to develop many more strategic and key partnerships.”

RecycleBank’s winning strategy is largely dependent on the important and lasting relationships it shares with the waste disposal companies that are on the front lines. RecycleBank currently has partnerships with several haulers and that number will grow now that current expansion plans are under way. “Participating haulers stand to gain both customer loyalty and market share along with the good will they get by improving the environment,” said Greg Howarth, Pennsylvania Independent Haulers Association. “Any program that helps them to decrease disposal fees and gain recycling revenues offers bottom line benefits that are hard to refuse.”

Another secret to the firm’s growth and interest involves the program’s plans to expand their already impressive list of retail partners like Whole Foods and Coke to offer recyclers many more ways to cash in their rewards. RecycleBank has over 300 reward partners that accept RecycleBank Dollars. This next level of funding will ensure RecycleBank can deliver significant consumer access in many more markets – therefore, broadening its advertising appeal.

About RRE Ventures:

Since its founding in 1994, RRE Ventures has been dedicated to helping talented management teams build leading companies in the software, communications, and financial services industries. With $850 million in assets, the firm backs entrepreneurs and management teams that possess the knowledge, vision, and discipline to create market-dominating companies. RRE’s team offers a unique combination of management, operations, and investment expertise, as well as an unrivaled network of relationships that has helped build over ninety companies. For more information, visit: www.rre.com.

About Sigma Partners:

Founded in 1984, Sigma Partners is a leading early-stage venture capital firm. The Sigma team uses their deep operational experience to provide entrepreneurs with practical strategic counsel through every phase of company growth. With over $1.5 billion under management and bicoastal offices, Sigma invests in innovative technology startups across the United States. Some of the market leading companies in which Sigma has invested include Atria, Cascade, Clarify, Internet Security Systems, KLA-Tencor, Octel, VeriFone, Vermeer, and Vignette. For more information, please visit http://www.sigmapartners.com.

About RecycleBank:

RecycleBank was launched with the goal of preserving the environment and demonstrating that businesses can build brand value with corporate citizenship. RecycleBank provides communities with a cost effective and environmentally conscious solution to the rising cost of waste collection. RecycleBank is an incentive based recycling program that partners with cities and businesses to encourage households to recycle. Households are then rewarded for their recycling efforts through rewards that can be redeemed at national and local businesses. By aligning the goals of the private sector with the goals of the public sector, RecycleBank creates sustainable value for all. Households, businesses, communities and the environment all reap the benefits of green, sustainable business practices. More information on the company is available at www.recyclebank.com.