---
title: Funding and Acquisition Trends in the Waste and Recycling Industry
description: Investors are active in the waste and recycling space in 2022.
---

[Wasted Talent](https://www.recyclesaurus.com/blog)

# [Funding and Acquisition Trends in the Waste and Recycling Industry](https://www.recyclesaurus.com/blog/funding-and-acquisition-trends-in-the-waste-and-recycling-industry)

 Written by [Recyclesaurus](https://www.recyclesaurus.com/blog/author/recyclesaurus) | Sep 7, 2022 12:54:33 AM

The best word we’re heard to describe the rate of investment and mergers in the waste and recycling industry this year? [Vigorous](https://www.waste360.com/plastics/future-plastic-shaded-green)

The best ad we’ve seen relating to mergers in the waste space invites the borderline seller to entertain offers for [acquisition](https://www.wastedive.com/spons/wanted-established-independent-family-owned-waste-recycling-and-portable/623059/). We’re sold! (But seriously, LRS seems to be taking over the world…or at least the Midwest.) They had to change their name last year from their Chicago affiliated Lakeshore Recycling Systems, because there’s not a lake in sight for most of their customers. 

## Then and now

Acquisitions in the waste industry are nothing new…the largest firms in the sector were built by a mania of acquisitions in the 90s. This is continuing due to private owners struggling with labor, the pandemic and seeking an “out” or independents not being able to compete against the consolidated landfill clout of the larger players. As larger companies move into a market, they can adjust their margins in that region in order to price out local ‘mom and pops.’ Thus opening the door for an acquisition or closure.

But in recent years, it isn’t just WM, Republic and GFL acquiring other waste and recycling companies. The big players are gobbling up tangentially related environmental services [companies](https://www.usecology.com/page/republic-services)to become a one-stop-shop for clients. Private equity is also coming in…what was that word?...vigorously…

The typical [players](https://www.recyclesaurus.com/waste-and-recycling-investors?hsLang=en)are keeping their pace…Clairvest Group, Aurora Capital, Laurel Mountain, Ironwood Capital, Kinderhook and Summer Street have continued active pursuit of regional players in hot markets like Atlanta and [Boston](https://www.wastedive.com/news/boston-carting-sperduto-clairvest-ironwood-recycling/627642/). Meanwhile, Macquairie out of Australia can’t stop gobbling up shares of large regional behemoths, such as the previously mentioned LRS in Chicago and Greenwaste in the Bay Area. They’ve also not shied away from venture capital investments such as the newly announced PET recycling company, [Circularix](https://www.prnewswire.com/news-releases/circularix-and-macquarie-group-to-build-and-operate-pet-recycling-plants-across-us-301578190.html).

## Tech investment and acquisitions

The gorilla in the room from a tech investment perspective is Rubicon. Reporting recent annual revenues in 2021 of $700 million, Rubicon and other investors have plans to bring the company [public](https://www.globenewswire.com/news-release/2022/04/12/2421025/0/en/Rubicon-Reports-Full-Year-2021-Financial-and-Operational-Results.html)via the Founder SPAC at a valuation of $1.7 billion. One of the few trash ‘unicorns’, Rubicon serves as a digital waste brokerage service as well as a platform for efficient collection of curbside materials. Cities can use Rubicon to create streamline routes, monitor drivers, as well as track bins that are filling up faster than others.

A massive focus from venture investors in the waste management space is actually going towards waste prevention within grocery aisles. In 2022, we’ve tracked three software companies who’ve received funding from venture funds to target improved forecasting for grocery purchasing, food spoilage, food redistribution as well as tracing the recyclability of packaging. Blackstone gave Relex Solutions out of Helsinki $568 million in[venture](https://agfundernews.com/relex-solutions-raises-568m-to-help-grocery-retailers-fight-food-waste-and-supply-chain-disruptions) funding for their platform back in January. S2G Ventures followed a few days later with a Series A[investment](https://agfundernews.com/s2g-leads-12-3m-series-a-for-food-rescue-app-flashfood) in Flashfood of $12 million.

A few weeks later Smarter Sorting out of Boulder, CO[bagged](https://blog.smartersorting.com/press/smarter-sorting-raises-25-million-led-by-g2-venture-partners-and-names-jacqueline-claudia-ceo?utm_content=201974705&utm_medium=social&utm_source=linkedin&hss_channel=lcp-24979866) $25 million for G2 Ventures which was later added onto from Regeneration VC in July. Annnnd then the next month, in April, G-Squared and Insight Partners helped create a unicorn out of Choco by[investing](https://techcrunch.com/2022/04/11/choco-unicorn-food-waste-supply-chain/) $111 million in this Berlin based food waste platform for retailers.

## Trends

VCs haven’t been the only folks busy on the tech side of waste and recycling. Private equity and other larger tech firms in the space have also been expanding their platforms. Trends we’re seeing based off of our [M&A Tracker](https://www.recyclesaurus.com/industry-trends) are:

- Traceability of materials:
- Cannabis:
- ESG reporting
- Bitcoin and trash

## The biggest trend in recycling: Robotics

Robotics companies such as Glacier and Everest have secured VC money in 2022, even during a terrible economic downturn, a pandemic and a war in Europe. As more packaging formats enter the stream, the data provided by these AI neural networks is invaluable for the recyclers and the brands that produce these products. As labor is harder to find, many operators continue to explore automation so they can keep their facilities running.

The biggest news of the year so far has been the acquisition of the pioneer of waste sorting robots (see our post on the robotics landscape [here](https://www.recyclesaurus.com/blog/companies-to-watch-waste-robotics-and-artificial-intelligence)), ZenRobotics was just [acquired](https://www.recyclesaurus.com/industry-trends)by Terex in August 2022. ZenRobotics has been steadfast in its positioning as a heavy duty claw robot, well suited for handling larger items that you might find in construction and demolition waste streams. 

With ZenRobotics now in the lineup, Terex, who builds mobile construction and organics sorting and grinding equipment, can expand their offerings to recycling and landfill owners and provide a full service package. It may also box out other competing robotics companies who are trying to cross into the construction waste industry.

## Getting a piece of the action

Even with massive chip shortages, wars in Europe and pandemics, money is flowing into the waste and recycling industry…vigorously. New funding is creating a pathway for non-industry talent to enter the recycling world by joining tech-forward companies like the [robotics](https://jobs.recyclesaurus.com/jobs?q=robot)companies that are blossoming or the [software](https://jobs.recyclesaurus.com/jobs?filter=eyJvcmdhbml6YXRpb24udG9waWNzLmluZHVzdHJ5X3NlZ21lbnQiOlsiU29mdHdhcmUiXX0%3D)platforms that are growing. [Policies](https://www.investopedia.com/inflation-reduction-act-of-2022-6362263)like the Inflation Reduction Act are also being implemented to expand sustainability initiatives which are encouraging venture capital and private equity to deploy funds even while other sectors have [cooled](https://www.forbes.com/sites/rebeccaszkutak/2022/03/23/record-setting-venture-capital-market-shows-signs-of-a-slowdown/?sh=5e78305c3f47)off.

The punchline is that this is a great time to be in the industry, so check out the industry’s coolest jobs [here](https://jobs.recyclesaurus.com/jobs).

[View full post](https://www.recyclesaurus.com/blog/funding-and-acquisition-trends-in-the-waste-and-recycling-industry)

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