Segway Series C relies on insiders

Segway, makers of the two-wheeled personal transportation device, has raised another $5.5 million for its Series C funding, which is targeted at $20 million. The Bedford, N.H.-based company had previously raised $10.2 million in the round, according to a regulatory filing in January.

A number of the Series C investors are Segway employees and insiders, including Robert Lemelson, Josh Weston, John Grohol (Segway.com webmaster), Eric Lemelson, Linda Grondstra, Klee Kleber (Segway VP 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.

Since 2000, Segway has raised about $126 million in venture funding, not including the latest round. Previous backers include Kleiner Perkins Caufield & Byers, CSFB Private Equity and Duff, Ackerman & Goodrich. The company 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.