LOS ANGELES--(BUSINESS WIRE)--Flipswap, the preeminent solution for mobile device trade-ins and incentivized electronics recycling, announced today that RRE Ventures, a leading early stage technology venture capital firm, and NGEN, a leader in cleantech funding, are investing $14 million in a Series B financing round.
“We saw a novel way to apply incentive principles to worldwide challenges of electronic waste. It’s an important mission,” says Sohrob Farudi, CEO of Flipswap. “We are fortunate to have found strong and forward thinking partners; it’s a huge vote of confidence for Flipswap to be recognized as an innovator with the backing of two leading firms during these tough economic times.”
Flipswap identified an opportunity to create significant value for mobile device users, manufacturers and retailers by extending the life of previously owned mobile phones. In the U.S. alone, over 150 million new mobile phones enter the market each year with a typical replacement cycle of 6 to 18 months. With only a small fraction of consumers taking the time and effort to sell these devices on their own, tens of millions of functioning mobile devices end up in desk drawers and landfills each year. Flipswap makes it easy for consumers to trade in their mobile phones and get credit toward a new device.
The company’s innovative software platform enables retailers to offer mobile consumers instant credit when trading in their old devices, creating clear economic incentives for both parties. Based on select factors, which include the condition of the device, market demand and inventory levels, the Flipswap platform determines the appropriate path to reuse or recycle. Today, the Flipswap program is available through an extensive network of nearly 6,000 retail locations in North America as well as premier online partners including Amazon.com, Newegg.com and Wirefly.com. Since the company’s launch in 2005, consumers have flipswapped over 700,000 devices.
“Flipswap is directly tackling issues of electronic waste and environmental sustainability through a highly scalable business model,” said Rosemary Ripley, managing director with NGEN. “With this investment we see significant opportunities to grow the Flipswap brand, platform and distribution footprint.”
“We were impressed with Flipswap’s innovative business approach to this growing global challenge, as well as their ability to execute and build momentum despite market conditions,” said Harsh Patel, venture partner with RRE Ventures. “We are delighted to support companies committed to positive environmental impact through entrepreneurship.”
In 2007 alone, Flipswap put enough mobile phones back into circulation to keep the equivalent of 50 tons of solid waste out of US landfills. To offset carbon emissions created by recycling, the company launched its reLeaf program and estimates it will plant 25,000 trees in 2008.
To find a Flipswap retailer in your area or to flipswap your phone online visit www.flipswap.com.
Flipswap is the environmentally responsible mobile phone trade-in and recycling company. The company’s unique platform offers both retailers and consumers a clear economic incentive to extend the useful life of mobile devices.
Founded in 2001, NGEN (www.ngenpartners.com) is a pioneering investor in the cleantech sector. The firm invests in early to late stage businesses that offer economically valuable products and services that positively affect the environment. With a history in materials science, NGEN has deep expertise in alternative energy, energy efficiency, pollution abatement and green resources. NGEN has offices in California and New York.
About RRE Ventures
Since its founding in 1994, RRE Ventures has maintained a clear commitment to a simple philosophy – identify talented entrepreneurs attacking high growth markets and partner with them over the long haul to build industry-leading companies. Today the firm manages $850 million in investment assets dedicated to early stage technology companies in both consumer and enterprise markets. The RRE team delivers a unique combination of investment, operations and entrepreneurial expertise ranging from startups to Fortune 500 companies, as well as an unrivaled network of relationships. We work hard to bring that combined expertise to bear for the benefit of our portfolio companies every day.
“FLIPSWAP”, the "FLIPSWAP” logo and any other product names, service names or logos of FLIPSWAP used, quoted and/or referenced herein are trademarks or registered trademarks of FLIPSWAP INC.