RecycleBank cashes in on venture funding

RecycleBank customers receive radio-chipped cans.

In its mission to motivate the masses to recycle, Philadelphia-based RecycleBank says it plans to extend the reach of its recycling incentive program.

RecycleBank launched in 2004 with a 500-home pilot project in Philadelphia, and has since expanded to reach 200,000 customers in 15 states as of December 2008, with plans in the works to reach about 750,000 more households by the end of 2009. The company’s expansion follows a $30 million Series B funding round in March 2008 led by Menlo Park, Calif.-based Kleiner, Perkins, Caufield & Byers.

RecyleBank aims to incentivize municipal recycling by distributing RecycleBank Reward Points based on how much a household recycles. Points are determined by weight, which is measured and recorded via a radio frequency chip embedded in recycling carts. Points can then be redeemed for products and services. While giants such as Northfield, Ill.-based Kraft Foods (NYSE: KFT) and Troy, Mich.-based Sears (Nasdaq: SHLD) offer ways to redeem points, RecycleBank also partners with local retailers, says Lisa Pomerantz, RecycleBank’s director of corporate social responsibility. 

Some municipalities with RecycleBank programs have seen recycling rates increase by more than 100 percent, the company says. RecycleBank makes money from two revenue streams: from municipalities and haulers who pay either a per-household rate or a portion of what they save from landfill diversion, and from sponsorship and advertising fees.

RecycleBank also recently expanded its e-waste recyling program to include laptops and MP3 players in addition to cell phones. Members can request a packing slip and mailing label and mail in their electronic device in exchange for Reward Points.