Segway hits the gas, raises $10M more

Segway, makers of the two-wheeled personal transportation device, has raised another $10 million for its Series C funding, which is targeted at $28.7 million. The Bedford, N.H.-based company had previously raised $15.7 million in the round, according to a regulatory filing in April.

The additional financing came from a single investor, but the filing does not identify the investor. Since 2000, Segway has now raised about $136 million in venture funding.

Many of the Series C investors are Segway employees and insiders, including Robert Lemelson, Josh Weston, John Grohol ( webmaster), Eric Lemelson, Linda Grondstra, Klee Kleber (Segway vice president of marketing), Linda M. Tenda, Thomas V. Tenda and Vernon Loucks (former Segway CEO).

Other investors in the Series C include Blackboard Ventures (the VC arm of the Ontario Teachers’ Pension Plan), Deka Products Ltd. Partnership, Jameson Holdings, NCD Investors, Credit Suisse First Boston Equity Partners and KPCB Holdings. Previous backers include Kleiner Perkins Caufield & Byers, CSFB Private Equity and Duff, Ackerman & Goodrich.

The company reports that it has sold about 23,500 of the transportation devices, as of last September. On its website, the company says it’s continuing to develop model vehicles using dynamic stabilization technology, which is geared to prevent tipping. One of the prototypes the company sees as most promising is Concept Centaur, a four-wheeled transporter for one or two people. Segway says the self-balancing vehicle would be less dangerous than an ATV or motorcycle, in addition to being battery powered and quiet. —Alexander Haislip