Electrobac, a Montréal-based electronics recovery technology company, has closed a seed-stage financing of $1 million.
The round’s investors were Fondaction and Ecofuel Fund, a seed investment affiliate of Cycle Capital Management. Electrobac participated in the 2016 program of Ecofuel Accelerator.
Founded in 2011 by CEO Philip Bénard, Electrobac implements and manages a network of smart recycling bins for small, end-of-life electronics. It also offers businesses a buyback scheme for mobile devices.
The company said it will use the funds raised to expand into new markets, including Ontario and British Columbia, double the size of the team, and enhance its platform.
Electrobac is also planning to roll out out a new model of consumer-grade recycling bin for high-traffic areas in Toronto.
Electrobac announces the closing of a $1M round of financing
Montreal, August 15, 2018 – Electrobac, the cleantech company working on the recovery and repackaging of small electronics, announces the closing of a seed round of financing of $1 million. The investors in the round are Fondaction and the Ecofuel Fund – Electrobac participated in the Ecofuel Accelerator training program in 2016.
“The recovery of small electronics is an important environmental issue for the industry. As such, my colleague Johanne Sévigny and I believe that Electrobac has a significant growth potential. Moreover, the company’s current contracts and ongoing discussions confirm the growing interest in this market segment, “said Richard Cloutier, Managing Partner of the Ecofuel Fund and President and CEO of the Ecofuel Accelerator.
“By supporting the growth of Electrobac, we encourage the recovery of small electronic devices, which can be reused safely or recycled rather than having them end up in the garbage,” says Geneviève Bouthillier, Deputy Chief Investment Officer at Fondaction. “Through this investment, Fondaction contributes to the fight against climate change and the preservation of natural resources while participating in the technological shift to a greener economy in Quebec, ” she adds.
Fondaction stands out with its investments aimed at supporting, promoting and encouraging sustainable development in Quebec SMEs. Over the years, it has developed considerable expertise in making investments with positive societal benefits, by considering environmental, territorial, social, and economic factors.
Conquering new markets
Electrobac’s goal is to become the market leader in both the recovery of small electronic devices from consumers as well as the revaluation of corporate smartphones. This financing will allow the company to expand into new markets, including Ontario and British Columbia. The funds will also be used to double the size of the team and improve proprietary technologies of the company.
Next fall, Electrobac plans to roll out a new model of consumer-grade, intelligent recycling bin in high-traffic areas of the Greater Toronto Area, such as grocery stores, shopping malls, office towers and schools. As part of this expansion phase, the company will also grow its business-to-business mobile phone repurchasing program to become nationwide. Many large clients from the industrial, professional, and financial service sectors already take advantage of this Buybac program, where the company repurchases and data-wipes used corporate cell phones and tablets.
Electrobac has an innovative positioning in a rapidly changing market. Due to the miniaturization of electronics, companies and consumers are buying an increasing number of small electronic devices such as tablets, cell phones, smart watches and more. In order to protect the environment, it is therefore important to provide accessible and specially adapted collection points for small electronic devices to prevent them from ending up in landfills. Additionally, our team relies on new technologies to recondition and re-use these devices rather than simply recycling them.
Electrobac aims to transform the recovery of end-of-life electronics. The company implements and manages a network of smart recycling bins for electronic waste, which are recognized as official deposit points of the Electronic Products Recycling Association in Quebec (EPRA-Quebec). In addition, Electrobac offers businesses a corporate buyback program for their mobile devices. Recovered devices undergo a rigorous process of data erasure that is certified by the RQO, and meets the highest industry standards. The devices are subsequently reconditioned or recycled. Electrobac is proud to partner with the social integration organization Coforce, which offers suitable and rewarding employment for people with disabilities.
Fondaction invests with Québec SMEs to help maintain and create jobs in Québec, with a focus on sustainable development. It manages more than $1.9 billion in retirement savings assets from more than 156,000 shareholders. Through its investments and commitments, either directly or through partner or specialized funds, Fondaction supports the development of nearly 1,200 companies that make a distinctive contribution to economic, social, and environmental development, among which are a number of social economy businesses.
Ecofuel is an investment fund and accelerator offering a specialized and customized training program for clean technology companies. Powered by Cycle Capital, Ecofuel works with entrepreneurs to assist them in starting businesses that are seeking an impact internationally.
The Ecofuel Fund, a $30 million venture capital fund, invests smart capital in seed and early-stage companies that develop and market clean technologies. It is funded by Investissement Québec, BDC Capital, Fondaction, the Fonds de solidarité FTQ and the Quebec Center for Biotechnology (CQVB).
Philip Bénard 514-566-2649