Kiosk company ecoATM, which dispenses money in exchange for recycled electronics, secured $40 million in mezzanine debt financing from Falcon Investment Advisors LLC to accelerate its growth plan.
To date, ecoATM has 300 kiosks nationally and plans to use the new capital to reach smaller cities and other types of high foot traffic areas.
“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," said Tom Tullie, chairman and CEO of ecoATM.
Currently, most ecoATMs are located in large shopping malls in large cities.
In 2012, the company grew from 45 ecoATMs primarily in California to a network of 300 ecoATMs in 20 states.
Previous investors include Claremont Creek Ventures and Coinstar Inc. The company received a $17 million round last spring, marking one of the larger investments made in local technology firms in 2012.
Since being founded in 2008, ecoATM has paid out millions of dollars to hundreds of thousands of customers and in the process saved landfills from hundreds of thousands of potentially toxic devices.
EcoATM finds a second life for 60 percent of the devices it collects and recycles the rest.
Falcon Investment Advisors, a private equity firm with offices in Boston and New York, has raised $1.7 billion and invested in more than 50 companies since being founding in 2000.