Thrift Recycling Management, a Lakewood, Wash.-based seller of used books and consumer goods on the Internet, has received $8.5 million in growth equity financing. QuestMark Partners led the round. News of the investment was disclosed by Cascadia Capital, a Seattle investment bank, which advised Thrift Recycling.
Cascadia Capital (Cascadia), a diversified, boutique investment bank serving both private and public growth companies around the globe and in the Pacific Northwest, today announced it advised Lakewood, Wash.-based Thrift Recycling Management (TRM), one of the largest sellers of used books and consumer goods on the internet, through its recent $8.5M growth equity financing. The investment for TRM was led by QuestMark Partners (QuestMark), a venture capital firm investing in market-leading expansion and late-stage growth companies across the U.S. QuestMark was joined by the company’s largest individual shareholder to complete the round. The funds will accelerate growth and help position TRM to be the dominant player in the recycled consumer goods space.
“Financing has been slow to recover in the Pacific Northwest, leaving many growing companies in the region — including us — questioning how to tap the necessary capital to move us forward in the next stage of our company’s growth,” said Phil McMullin, CEO and co-founder of TRM. “Cascadia was the ideal partner for Thrift Recycling Management, and brought us a wealth of knowledge about the local financial markets as well as access to growth equity investors from across the U.S. Cascadia’s diligence in bringing QuestMark to the table resulted in an equity investment that validates our business model and will fuel our growth and leadership in the recycled consumer goods space.”
TRM was founded in 2004, after McMullin, then part of the management team at Savers, Inc., noticed that countless used books were being thrown into landfills, while many low-income individuals had no access to reading materials. After an initial partnership with Amazon.com and software provider Monsoon to begin selling these used books online, TRM was created to take advantage of the resulting business opportunity. The Company, which closed its last fiscal year at $27M in revenue, now works to reduce the cycle of poverty by providing services to public charities whose missions include increasing access to books and other consumer goods to those in need, and to ease the pressure on landfills by promoting reuse and recycling. TRM has operations nationwide, including the Pacific Northwest and British Columbia.
“This transaction is a meaningful example of the opportunity that exists for Pacific Northwest companies to access financing from outside the region, and the capital that is available for growing companies like TRM with proven economic models,” said Bryan Jaffe, Senior Vice President of the Middle Market practice at Cascadia Capital. “QuestMark’s investment in Thrift Recycling Management is a tremendous validation of the Company’s innovative approach to product sourcing, and will provide the necessary capital for the Company to continue growing while pursuing its broader mission.”
About Cascadia Capital, LLC
Cascadia Capital is a diversified, boutique investment bank serving both private and public growth companies around the globe. Cascadia’s business is diversified in terms of the industries the firm covers — Information Technology, Sustainable Industries and Middle Market — and in terms of the range of advisory services it provides — Mergers and Acquisitions, Corporate Financing and Strategic Advising. This diversification provides the firm with stability amidst market fluctuations. Cascadia is a pure advisory firm, and unlike other investment banks, is not conflicted by trading, lending, research or cross selling business. For over a decade, the firm has delivered the best outcomes for clients based on its transaction experience, domain expertise and commitment to building long-term relationships. Cascadia always acts in the long-term interests of clients, and honors its position as a trusted advisor. For more information, visit http://www.cascadiacapital.com.
About Thrift Recycling Management
Thrift Recycling Management, Inc. recycles used merchandise products, including books, clothing, toys, electronics, and kitchenware for resale in the United States and internationally. The company sells product on-line, wholesale to other retailers, and through its own retail location. Thrift Recycling Management, Inc. was incorporated in 2003 and is based in Lakewood, Washington. It has locations throughout the United States and Canada.
About QuestMark Partners
QuestMark, founded in 1998 and based in Baltimore, Maryland, is a private investment firm focused on investing in technology, healthcare, and consumer businesses. QuestMark invests in revenue-generating companies where they believe the market dynamics and business models are the most compelling. They typically invest $5 to $15 million in emerging growth companies with exceptional management teams and proven products and services. QuestMark has over $750 million under management in three funds.