Second Rotation, a startup whose service Gazelle offers an online gadget buyback program, said today that it has raised $6 million in second-round funds. Gazelle buys old gizmos from consumers and then sells them on eBay. The round was led by RockPort Capital Partners and also included return investors Venrock and angel investors Austin Ligon, Ashton Peery and Henry Vogel formerly of eBay. The company says it will use the money to continue its branding and marketing campaign.
The Gazelle service accepts old phones, laptops, satellite radios, MP3 players, external hard drives, cameras and even old movie and video game discs.
Customers search for their product on the site, answer a few questions about the condition of the gadget — original cables? scratched screen? — and Gazelle spits back an estimate. If you accept, a pre-paid, self-addressed box arrives at your home for you to pop your old e-gear into and then send back to Gazelle. Once Gazelle checks it out, you get your cash. The company claims it pays the average customer more than $100 for old gadgets.
This round of funding pushes the Boston-based startup’s financing to more than $10 million, as the company raised $4.4 million earlier this year. A number of startups have popped up to capitalize on this new “recommerce” business model, including BuyMyTronics, Flipswap, EZTradein, Kashless and GreenSight. Second Rotation leads the pack of consumer-oriented e-cyclers in funding, but the market opportunity for e-waste recyclers is huge and growing. A three-day electronics recycling drive at the Mall of America last year had to be cut short because of the overwhelming response, which generated over 1 million pounds of e-waste by the second day.