Lehigh Technologies, a Naples, Florida-based rubber recycler, wrapped up what its CEO called a "substantial" funding round in March that was led by new, heavyweight investors KPCB and Index Ventures, according to VentureWire. It previously raised $18 million from NGP Energy Technology Partners and some early seed money from Gulfshore Ventures.

The funds will be used to build a new $15 million recycling plant next year, the company's second in its 5 year history. Dennis Gormley, its CEO, wants to capitalize on the rising price of rubber, which is up 30 percent over the past year. Despite the historic high -- by some estimates, current prices are 5 times where they were 5 years ago -- rubber is still one of the most commonly used materials not to be recycled. Gormley said each plant could eventually generate $40 million in annual revenue, including $15 million in earnings before taxes and interest.

The firm, which goes through about 6 million tires every year, buys them chopped for around 10 cents a pound and cryogenically freezes them using liquid nitrogen. It then makes rubber powder by putting them through a mill at high velocity, which can be used in paints, with plastic and in the production of tires. Manufacturers could halve their costs by switching over to recycled rubber, which can make up to 15 percent of new tires, instead of newly produced rubber.

In addition to expanding its operations worldwide, Lehigh will seek to form relationships with tire suppliers, such as Wal-Mart, interested in purchasing recycled components. Gormley said his firm already had several customers though he failed to disclose any names. He believes Lehigh could achieve higher margins by targeting other industries that need finer gradations of rubber powder. While the costs would remain the same for Lehigh, the price of powder increases as it becomes finer.

This marks the second such big funding round for a rubber recycling firm. In late May, Ecore International, a Lancaster, Penn.-based scrap tire rubber recycler, closed a $29 million round from Element Partners