Segway keeps rolling, aims for $40M

Segway, makers of the two-wheeled personal transportation device, has upped the size of its Series C round and raised funding from a new institutional investor.

The Bedford, N.H.-based company is now shooting to raise nearly $40 million, $35.3 million of which it has already closed, according to a regulatory filing.

Segway began raising its Series C a year ago with a $15.7 million commitment. It closed on $25.7 million as of last July and adjusted its target up to $28.7 million.

Segway added the Masdar Clean Tech Fund to its investor roster. Masdar runs a venture capital fund of funds that makes direct investments in startups and also takes an LP investment in venture funds focused on cleantech. Masdar represents investment dollars from such LPs as the Abu Dhabi Future Energy Company, Consensus Business Group, Credit Suisse and Siemens and has invested in energy related VC funds such as Altria Technology Fund V and EnerTech Capital Partners III, according to its website.

Since 2000, Segway has now raised about $171 million in venture funding.

Many of the Series C investors are Segway employees and insiders, including Robert Lemelson, John Grohol (webmaster), Klee Kleber (vice president of marketing) 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 recently announced its product would be used by security guards at more than 150 Target stores nationwide. It also launched a social network for “anyone interested in joining the worldwide Segway movement” according to its website. —Alexander Haislip