Domain: Recycling and Sustainability
Stage: Early Validation
When: January 2024-April 2024
Team Skill Set: Solo founder with a heavy background in product management
Thesis
The idea began with a simple question: How can we make recycling easier and more efficient? I envisioned introducing smart recycling machines in urban areas, allowing citizens to deposit recyclable materials easily. The machines could be integrated into a monetizable recycling infrastructure with potential revenue streams—through partnerships with municipalities, vendor and attraction providers, recycling companies, and advertising. The vision seemed feasible: to create a system that not only increased recycling rates but also generated value for cities and their residents.
Validation
Conducting market research and identification of the needs and gaps in the field of waste recycling – I initially focused on the solution to improve recycling efficiency.
Conversations with industry stakeholders, including the Tel Aviv municipality and recycling company Tamir, led me to understand that municipal support was essential for implementation. I slowly realized my goal was to create a mechanism for integrating the different players of the recycling ecosystem. This shift toward integration led me to see the project not just as a business but as a tool for optimizing the entire recycling process.
I noticed a gap between significant government funding and the lack of transparency from recycling companies, especially in the deposit system. I approached this from the perspective of business opportunities and the potential benefits for municipalities: Instead of relying on state-owned companies, they could collaborate with private players and manage the reverse vending machines (RVMs) themselves, creating new revenue streams and improving recycling efficiency.
Discussions with potential international partners (especially in wealthier Arab countries), such as Sparklo, indicated a potential market for selling recycled plastic materials, another potential avenue for monetization.
Additionally, I explored incorporating advertising screens on the machines as another potential revenue stream.
Why it didn’t progress
1. Regulatory and Operational Barriers: The initial realization that working with, rather than against, established municipal players was essential led to a pivot in strategy. However, negotiations with key stakeholders proved challenging, which slowed progress significantly.
2. Logistical Challenges: Waste collection logistics were another obstacle that required more exploration. The machines would need frequent emptying, requiring coordination with waste management entities. High-demand periods (e.g., weekends at the beach) introduced additional constraints. While these limitations presented substantial challenges, I also see them as potential opportunities, though I didn’t fully validate this before shelving the idea.
3. Lack of a Committed Team: I worked alone, making it difficult to navigate regulatory challenges and execute further on validation, MVP, and more. A co-founder with experience in the recycling or municipal sector could have accelerated progress.
4. Time Constraints: With a limited timeframe in Israel, I ultimately accepted a full-time job offer abroad, which prevented me from dedicating further time and energy to the project.
5. Unresolved Monetization Model: While there were potential revenue streams (municipality partnerships, advertising, international plastic sales), none were fully validated, making the business case uncertain.
Insights
1. Community Engagement as a Catalyst: Engaging with stakeholders early helped refine the idea. Conversations with city officials and business leaders clarified feasibility constraints. I also learned the value of “speaking out loud” about the idea—many people I encountered were willing to help and connect me to relevant contacts in the ecosystem.
2. Iterate Quickly, but with the Right People: A committed team with diverse expertise could have helped test assumptions faster and potentially secure the right partnerships. As a new “Oleh”, a local team member would have been invaluable.
3. Timing Matters: The idea remains viable, but execution requires the right moment, resources, and team composition.
4. Focus More on the Pain Points: Initially, I was very product-focused. If I had spent more time understanding user behavior and the deeper pain points in the recycling industry, I believe the concept might have been evolved into a more viable solution or taken a different shape.
6. The “Local” Advantage: Starting a company in a foreign country presents its own set of challenges, especially as a new “Oleh.” If I hadn’t left Israel, I would strongly recommend bringing on a local team member who can tap into their network and help navigate the local landscape more efficiently. Their local knowledge and connections would significantly accelerate the process and help avoid common hurdles.
Resources
2) Deposit Law
