Sidewalks used to be so much nicer, before the Segway Personal Transporter started hitting the streets. Remember being able to walk peacefully along, happy on the two legs God gave us? Then Dean Kamen brought us the Segway, and suddenly you couldn’t step outside without one whizzing by. Everyone and their neighbor bought one, making Kamen and his investors rich –
Whoops, sorry, wrong future. In retrospect, it seems at least a little silly that the Segway got as much hype as it did back in late 2001 and 2002, to the point of top Kleiner Perkins VC John Doerr saying that Segway would be the fastest outfit in history to reach $1 billion in sales. Yet the firm has also survived thus far, and appears to be expanding the $10 million third round of funding we reported in January, according to a filing dug up by VentureWire.
Segway’s blessing and curse is its oddball design. It’s packed with electronics and gyroscopes that keep the vehicle balanced and make rolling around at the pace of a running human effortless. Unfortunately, aside from being ridiculous looking, Segways are also expensive, a combination that has sent most potential consumers buyers packing to alternatives like Edge scooters. Nobody except the company knows how many have been bought for recreational use, but the fan club has long since disbanded, and in most places, just spotting one makes for a red-letter day.
What has saved Segway, at least so far, is its business customers. Police departments and security love to use Segways for what were previously onerous foot patrols. Warehousing businesses and golf clubs have bought them for employee and visitor use. Google, predictably enough, offers them as a perk to employees. Other uses abound — anywhere walking, biking or driving is impractical, a Segway can likely fit in.
What’s interesting about the reported funding is that one of the new investors is the Masdar Clean Tech Fund, an arm of Abu Dhabi’s Masdar Initiative. While that could just be a venture investment, it’s possible it was more of a strategic funding — after all, Abu Dhabi will need to figure out some zero-emissions transportation options for its promised zero-emissions city.
If Segway is selling worldwide, especially to other small cities that need a local transportation option, the company could get recoup its investments, which have now reached almost $150 million of venture capital and $100 million in development costs. And though the fan club may be dead, Segway is still reaching for a consumer base, with its recently launched Segway Social network. There’s also the strong likelihood that the company will roll out other transporter designs in the future.
Backers on the round, which VentureWire says is $35 million total with a recent tranche of $9.5 million, include Kleiner Perkins, CSFB Private Equity, the Masdar fund, buyout firm Duff, Ackerman & Goodrich, and others.
[Photo credit: Boris Veldhuijzen van Zanten; Flickr]
Tags: co:Segway, deal, inv:Kleiner-Perkins-Caufield-&-Byers, inv:Masdar-Clean-Tech-Fund8 Comments
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Daniel Swanson said:
The Segway PT is for people who can somehow see beyond how “ridiculous” they may look and recognize their value and practicality. I’ve been “gliding”, as we Segway owners call it, for almost four years.
We got rid of our second car early on and use the Segway PT for short-distance errands as well as enjoyable treks for fun. It’s actually transformed the way we live. For example, our grocery store is eight blocks away. Too far to walk on a hot Florida day, especially on the way home carrying the bags. Too close to drive.
But with the Segway I can shop for the day’s meals and have carried up to 50 lbs of groceries in bags draped over the handlebar. This gives us fresher (more nutritious) food and saves us money with less waste due to spoilage and the refrigerator, not running so often.
When I’m out gliding I can notice far more in the environment than when I drive. For example, we have so much beautiful wildlife around Clearwater, FL. I stopped to watch an osprey feeding on his catch perched atop a street light. I can smell the jasmine and magnolias blossoming now this time of year. And I can stop and chat with friends and neighbors and even total strangers.
I also smile whenever I pass gas stations and stalled rush-hour traffic.
As a Segway PT owner I’ve made a wise investment in sensible transportation and in my daily life routines.
If you’re more concerned with looking “ridiculous” than with actually doing something towards a cleaner environment, reducing traffic congestion, or towards improving communications and relationships with your neighbors and fellow citizens of your community, then you should get over that attitude and take another look at the Segway PT.
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Jay burnham said:
You failed to mention one other use for the Segway…To help kick-start a poor real estate market. Serious sellers can list their homes with me and receive a FREE Segway when the house sells. That’s right…not simply a bottle of wine or a dinner-for-two gift certificate…a Segway!
Details at: http://www.ListwithJayforaFreeSegway.com
Regards,
Jay Burnham
Coldwell Banker Residential Brokerage
North Shore, Massachusetts -
Doug said:
Americans are odd. I predict gasoline at $5 a gallon may soon make the tiny zero gas, zero noise, zero pollution electric “car” the Segway PT a very cool thing to drive.
What is defined as uncool can change quickly. Remember the Prius was previously defined as a geeky hybrid gimick vehicle that nobody would ever be seen dead in. Now it’s the best selling car on the market and the insult has become, “you think your all great, you drive that Prius to show off.”
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Boris Veldhuijzen van Zanten said:
Thanks for using my photo AND giving me credit! Hard to see here but my 3 year old daughter is a actually ALSO standing on the segway in this photo!
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Joe Schmoe said:
Wow, if you’re going to plagiarize Gawker, at least change a few more words….
http://gawker.com/352003/wheeled-shoe-soon-to-be-ubiquitous-on-new-york-streets
Wheeled Shoe Soon To Be Ubiquitous On New York Streets
Remember how the invention of the Segway in 2001 revolutionized urban transport, to the point that cars have now vanished from the streets of Manhattan in favor of a fleet of two-wheeled scooters? -
Chris Morrison said:
Joe Schmoe: For any real plagiarization to take place, I’d have to actually follow Gawker. Congratulations to you for being a faithful reader, though.
The proper criticism / insult lies in being lazy enough to use really obvious jokes to lead off stories, if you’d care to try again.
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Joe Schmoe said:
For any real “plagiarization” to take place, it would have to be a word.
I know blogs can’t afford copy editors, and all….
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Chris Morrison said:
Yet online dictionaries are free. Try checking one out sometime.
