PORTLAND, OR -- VendScreen Inc. reports that it has raised $8.4 million in a Series B round, with another $7 million reserved from the 3x5 Special Opportunity Fund and Merrickhanna Ventures (MKV), both closed-end private investment funds. This backing, combined with Series A capital from MKV earlier this year, will back VendScreen's growth by enabling the company to build operating infrastructure, according to VendScreen chief executive Paresh Patel.
The company is the developer of the VendScreen Revolution, a retrofittable Android-based computing device with a touchscreen that can be installed into existing vending machines, as well as new ones. It is MDB-compatible, and fits into the card-terminal cutout common in recent machines. The apparatus also can be surface-mounted to machines without the cutout.
"VendScreen Inc. is at an inflection point," Patel observed. "We're growing very fast, having evolved from a development company into an operating company in under a year. This funding will allow the company to push aggressively into the market while we build our team and company operations to support growth."
The 3x5 Special Opportunity Fund L.P. (Portland) is focused primarily on direct investments in later-stage companies. The fund opened in 2011 and recently closed at approximately $70 million in committed capital, which it expects to deploy over five portfolio investments.
VendScreen said it is shipping devices now and working feverishly to scale to meet customer demand.
"It is clear from customer and prospect reception that our value proposition is getting through to people," said VendScreen chief technology officer Glenn Butler. "Up until now, vending machine operators may have equipped between 3% and 5% of their machines with cashless technology. Now, they are ready to go 100% with VendScreen Revolution, which brings existing vending machines into the much-desired digital age with features such as support for cashless transactions, display of nutrition information, advertising and promotions, and transmission of data to improve routing efficiency, inventory control, and merchandising."