TerraCycle gives thanks to one of their top collectors, the Legacy Traditional School. TerraCycle was founded in the fall of 2001 by Tom Szaky, and Jon Beyer, two freshmen at Princeton University. The initial idea came about as a submission to a business plan contest sponsored by the Princeton Entrepreneurship Club. The following summer, Szaky and Beyer made arrangements with Princeton Dining Services to take dining hall waste and process it in their prototype "Worm Gin".

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