EcoATM raises $14.4M for ewaste buy-back

The startup also receives a Phase I grant from the NSF

If you've ever upgraded to a new smartphone and have been stuck wondering what to do with your old phone (throw it out or hang onto it indefinitely in case you want to reminisce over old texts some day?), ecoATM has devised an innovative way to make the process of detaching from your device quick and painless: automated kiosks. The idea snagged the attention of Coinstar and Claremont Creek Ventures, both of whom have led ecoATM's $14.4 million Series A round. 

The idea is so awesomely simple, it's amazing that no one else has thought of this. Let's say you recently splurged for your very first smartphone and want to get rid of your old basic mobile phone. You can simply take it to one of ecoATM's kiosks, place the device in the bin, and once the machine makes a visual identification of the device and runs a plug-in diagnostics test, it will offer you a buy-back amount based on what the device is going for on the market. If you accept, you can either donate the amount to charity or you can get a receipt that you can take to a store clerk to redeem for cash. 

The concept is an ideal solution to the rising tide of ewaste that's becoming more and more of a problem as consumer electronics become more advanced and ubiquitous. Of the 2.25 million tons of TVs, cell phones, and computer products that people throw out each year, only 18% is collected for recycling. The rest ends up in landfills, according to the EPA, which estimates that electronic waste now accounts for 2% of the municipal solid waste stream. And research has shown that ewaste is growing at a rate three times that of other municipal waste. The average U.S. household owns 26 consumer electronic devices, totaling 3 billion nationwide. 

EcoATM currently has 11 trial locations in California, Washington, Nebraska, and Kansas, where it claims it has already bought back tens of thousands of devices and paid out hundreds of thousands of dollars to consumers. 

"EcoATM is an innovative automated retail concept that we believe will resonate with today's environmentally minded consumers," said Gregg Kaplan, President and Chief Operating Officer of Coinstar, Inc, in a prepared statement. "We invested in ecoATM because we believe they have a viable and promising business and we are committed to fostering innovation in automated retail."

Randy Hawks, managing director at Claremont Creek Ventures, and Gary Cohen, SVP of marketing and customer experience at Redbox (a subsidiary of Coinstar), will join ecoATM's board of directors.

The company also announced Wednesday that it has been awarded a Phase I grant by the National Science Foundation.

Image source: earthtechling.com