Falcon Closes $40MM Mezz Debt for ecoATM
San Diego-based startup ecoATM announced that it secured $40 million in mezzanine debt financing from Falcon Investment Advisors. To date, ecoATM has 300 kiosks nationally and plans to use this new capital to continue its goal of providing convenient portable electronics recycling solutions throughout America.
“In 2012, we grew from 45 ecoATMs primarily in California to a network of 300 ecoATMs in 20 states,” said Tom Tullie, chairman and CEO of ecoATM. “There’s still a large percentage of the country that doesn’t have access to a convenient recycling solution for their mobile phones and other personal portable electronic devices. We raised this money to help us deploy ecoATMs nationwide and help people recycle their old phones, tablets, or MP3 players, regardless of where they live.”
Currently, most ecoATMs are located in large shopping malls located in large cities. This financing will help ecoATM reach smaller cities and other types of high foot traffic areas.
“We’re excited to be a part of ecoATM’s growth,” said Rafael Fogel, partner at Falcon Investment. “It is not often that an opportunity comes along that combines such a compelling investment thesis with an invitation to consumers to help heal our planet.”
The new capital has already allowed ecoATM to add to its kiosks the ability to accept tablets, in addition to cell phones and MP3 players.
The company created an automated self-serve kiosk system to buy back old phones, tablets or MP3 players for cash.
Falcon Investment Advisors is a private equity firm that specializes in subordinated debt and other junior capital investments.