The “You Be the VC 2.2” feature focuses on ecoATM, a company that is deploying a network of self-service kiosks that enables shoppers to recycle unwanted electronic gear. Imagine you’re in a class where the instructor has set up a debate-type format to discuss the strength of ecoATM’s business opportunity. A classmate of yours has been assigned to argue that ecoATM has a strong opportunity, and you’ve been assigned to argue that ecoATM has a weak opportunity. Briefly summarize what your arguments will be.

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YOU BE THE VC 2.2 Company: ecoATM Web: www.ecoatm.com Twitter: ecoATM Facebook: ecoATM Business Idea: Deploy a network of self-service kiosks that enables shoppers to recycle unwanted electronic gear safely, starting with cell phones, and offering shoppers cash, gift cards, or the ability to donate the value of their cell phones to charity in exchange for the phone. Pitch: The average household has five to six outdated cell phones tucked away, worth an estimated $12.2 billion in secondary markets or in recyclable material. While many phones are eventually sold or recycled (ReCellular processes 400,000 used cell phones per month), many are not, which results in an environmental hazard. Many discarded phones go into landfills, and pose a danger due to the presence of high levels of lead, cadmium, copper, and other hazardous material. With the average life span of cell phones shrinking to about 18 months, this problem is expected to quickly become worse. ecoATM has devised a solution that not only allows the owners of used cell phones to get a fair price for their phones, but has the potential to make a meaningful impact on the number of cell phones that enter landfills. The com- pany has devised a kiosk that can quickly assess the value of a used cell phone, and pay the owner of the phone on the spot the value of the phone. It works like this. A cell phone owner approaches the machine, which looks like an ATM machine, and follows a set of visual prompts. The cell phone is placed in a tray, and is plugged in to a universal adapter. The machine, following sophisticated computer