Hanger Network
, a New York company which produces environmentally friendly hangers, has raised $8 million round of venture capital financing.

The hangers are novel: They are made from recycled paper and are bio-degradable, and they carry ads on their necks, which allows the company to distribute the hangers for free.

This is another one of those brilliant ideas you wish you’d thought of. It cleans up the environment, and is useful too. If you’re like us, you find the prevailing plastic hangers annoying. Our drycleaner service has always taken back these plastic hangers, but we never know what happens to them. The sad truth: billions of these things end up in garbage dumps.

Kodiak Venture Partners and Sigma Partners co-led the round, which will help the company grow its sales force and attract additional brands to its stable of clientele who advertise to consumers through its so-called EcoHangers(TM). Advertisers include L’Oreal, Dunkin Donuts and Revlon.

From the statement:

Hanger Network delivers in-home marketing through a proprietary network of 35,000 drycleaners in the US. This offers advertisers a potential weekly circulation of 52 million, covers all 210 DMAs, and has a 100% view rate at a fraction of the cost of a postage stamp. Advertisers can create programs regionally, nationally and by gender, and can include samples, coupons and advertisements. At a time where thanks to innovations like Tivo, DVR and Satellite Radio have limited broadcast advertising’s effectiveness, more major brands are looking to utilize in-home media solutions like EcoHangers(TM) to directly reach consumers.

Hanger Network will use the capital to establish additional distribution channels and increase its existing national sales force. Also as part of their investment, Chip Meakem of Kodiak Venture Partners and Bob Davoli of Sigma Partners will join Hanger Network’s board of directors.