Phenomenal wheelchair!!!
Beverly Cusick
Description
Collection
Title:
Phenomenal wheelchair!!!
Creator:
Beverly Cusick
Date:
12/27/2001
Text:
Hi Friends and Colleagues!
Dean Kamen is my kinda guy!!! A maverick, a fresh-thinker, and brilliant!
At 11:10 AM 12/27/01 -0700, you wrote:
>See also:
> <URL Redacted>
>
>and note that there's a business link, too. Don't see much use for it, yet.
>
>Lee
>December 27, 2001
>Dow Jones Newswires
>SOMETHING VENTURED: How 'Ginger' Seduced The Big VCs
>By PETER LOFTUS
> Of DOW JONES NEWSWIRES
> (This was originally published Wednesday.)
>NEW YORK -- Two prominent venture capital firms and a group of individual
>investors hope the new Segway human transporter takes them places - and
>they've got $90 million riding on it.
>Segway is the high-tech, motorized scooter that was unveiled by inventor
>Dean Kamen in early December, after several years of secret development
>under the code name Ginger. Kamen's company, Segway LLC of Manchester,
>N.H., calls the two-wheeled device a revolutionary,
>environmentally-friendly transportation alternative that fills the gap
>between walking and driving a car.
>But promises of revolution don't always translate into high returns for
>investors. This makes it all the more intriguing that two top VCs, CSFB
>Private Equity and Kleiner Perkins Caufield & Byers, would commit such
>large amounts to the project.
>Michael Schmertzler, a partner with CSFB who sits on Segway's board, says
>he's confident that Segway will be successful. But he'll wait patiently
>for returns on CSFB's investment, unlike so many VCs of the late 1990's
>who rushed dot-coms into public stock offerings.
>I would prefer to realize the return on this once the product realizes
>its potential, but that could take a number of years, easily, Schmertzler
>said.
>CSFB Private Equity, a unit of Credit Suisse Group (CSR), and Kleiner
>Perkins, a Silicon Valley firm, each have invested $38 million in Segway.
>Some 15 individuals, including Xerox Corp. (XRX) Chairman Paul Allaire,
>together invested an additional $14 million.
>The $90 million total investment ranks among the largest VC deals
>announced in recent months; the average VC investment during the third
>quarter was $8.8 million, according to the National Venture Capital
>Association.
>Segway won't disclose the company's valuation but says Kamen still owns a
>significant majority of the company. That implies a valuation of at least
>$180 million.
>Although Segway was just introduced, its financing was wrapped up many
>months ago. Kamen and his partner, Segway Vice Chairman Robert Tuttle,
>began searching for funding in 1999.
>Before hooking up with CSFB, Segway met with about five significant
>private equity or venture players, all of whom passed on the deal, Tuttle
>said. At the time, Internet mania was at its peak, and a lot of VCs
>basically weren't investing in anything other than the e-commerce,
>software and telecom fields, Tuttle said. We didn't fit in that domain,
>you might argue.
>Finally, in late 1999, an intermediary introduced Segway to Jack Hennessy,
>then head of CSFB Private Equity and the retired chief executive of Credit
>Suisse First Boston. Hennessy brought Schmertzler into the mix, and the
>two sides reached an agreement in principle on the deal structure by March
>2000. Two rounds of funding followed, in July and October.
>Schmertzler liked Segway for several reasons. It addressed a real market
>need, it used sophisticated, proprietary technology, and Schmertzler had
>confidence in Kamen and Tuttle, he said. He also liked Segway's component
>suppliers, including Delphi Automotive Systems Corp. (DPH).
>The key to Segway is its patented balancing technology, which uses
>gyroscopes and software to keep the device upright and allow the rider to
>control it simply by leaning forward or backward. Segway can travel up to
>12.5 miles per hour, and uses relatively small amounts of power.
>Soon after CSFB began talks with Segway, Kleiner Perkins came on board and
>eventually became an equal partner with CSFB. John Doerr, a Kleiner
>Perkins partner and Segway director, didn't return calls for comment.
>Segway is an unusual investment for both venture capital firms. CSFB had
>relationships with the auto industry and some Segway suppliers, but Segway
>isn't a traditional transportation project. The deal is even farther
>afield for Kleiner Perkins, which is well-known for nurturing Internet and
>more traditional tech firms.
>Even odder was the deal's clandestine nature. Kamen wanted to keep Segway
>secret to avoid the pressure of rushing a product out to market that
>wasn't ready. Also, he wanted to forestall a competitive response from
>other entrepreneurs. The secrecy made it difficult to line up investors.
>There probably would have been some very good investors there to be in
>contact with, but we never connected, Tuttle said.
>Segway was so adamant about secrecy that when Schmertzler's 11-year-old
>son tested the device last year, he had to sign a confidentiality pact.
>The boy kept his word and didn't tell anyone about Ginger, his father said
>proudly.
>The cover was partially blown last January when the Web site Inside.com
>reported some details about Ginger. Segway was soon bombarded with venture
>capitalists who wanted to invest, but Segway already had the financing it
>needed, Tuttle said.
>Now, Segway is testing its device with companies and other organizations,
>including the U.S. Postal Service and Amazon.com Inc. (AMZN). Segway plans
>to make the device available to consumers in late 2002.
>Some outsiders are skeptical. Industry and media critics have said Segway
>is potentially dangerous, and that cities won't let people use the
>transporters on sidewalks.
>If Segway flops, it won't be alone. Jesse Reyes, vice president of
>research firm Venture Economics, said there have been many cases of
>high-profile investments in new technologies that didn't pan out,
>including artificial intelligence computing during the 1980's.
>It's very rare that in any of these investments, reality lives up to the
>hype, Reyes said. Some do well, some are catastrophic failures.
>Often, the first company out with a new technology ultimately fails, and
>other companies end up doing it better, Reyes said. Palm Inc. (PALM), for
>instance, successfully brought handheld computers to market after a
>botched effort by Apple Computer Inc. (AAPL).
>But Schmertzler says Segway has many advantages, including its patents. He
>points out that CSFB has invested in the balancing technology, not merely
>a human transporter. If the human transporter doesn't work out, the
>balancing technology could be used for other applications, including
>larger devices.
>-By Peter Loftus, Dow Jones Newswires; 201-938-5267; <Email Address Redacted>
>
>===========================================
>Lee Taylor <Email Address Redacted>
>P.O. Box 600, Placerville, CO 81430
>(970) 728-3304 (970) 728-7078 fax
=========================================
Beverly Cusick, MS, PT <Email Address Redacted>
<URL Redacted>
Dean Kamen is my kinda guy!!! A maverick, a fresh-thinker, and brilliant!
At 11:10 AM 12/27/01 -0700, you wrote:
>See also:
> <URL Redacted>
>
>and note that there's a business link, too. Don't see much use for it, yet.
>
>Lee
>December 27, 2001
>Dow Jones Newswires
>SOMETHING VENTURED: How 'Ginger' Seduced The Big VCs
>By PETER LOFTUS
> Of DOW JONES NEWSWIRES
> (This was originally published Wednesday.)
>NEW YORK -- Two prominent venture capital firms and a group of individual
>investors hope the new Segway human transporter takes them places - and
>they've got $90 million riding on it.
>Segway is the high-tech, motorized scooter that was unveiled by inventor
>Dean Kamen in early December, after several years of secret development
>under the code name Ginger. Kamen's company, Segway LLC of Manchester,
>N.H., calls the two-wheeled device a revolutionary,
>environmentally-friendly transportation alternative that fills the gap
>between walking and driving a car.
>But promises of revolution don't always translate into high returns for
>investors. This makes it all the more intriguing that two top VCs, CSFB
>Private Equity and Kleiner Perkins Caufield & Byers, would commit such
>large amounts to the project.
>Michael Schmertzler, a partner with CSFB who sits on Segway's board, says
>he's confident that Segway will be successful. But he'll wait patiently
>for returns on CSFB's investment, unlike so many VCs of the late 1990's
>who rushed dot-coms into public stock offerings.
>I would prefer to realize the return on this once the product realizes
>its potential, but that could take a number of years, easily, Schmertzler
>said.
>CSFB Private Equity, a unit of Credit Suisse Group (CSR), and Kleiner
>Perkins, a Silicon Valley firm, each have invested $38 million in Segway.
>Some 15 individuals, including Xerox Corp. (XRX) Chairman Paul Allaire,
>together invested an additional $14 million.
>The $90 million total investment ranks among the largest VC deals
>announced in recent months; the average VC investment during the third
>quarter was $8.8 million, according to the National Venture Capital
>Association.
>Segway won't disclose the company's valuation but says Kamen still owns a
>significant majority of the company. That implies a valuation of at least
>$180 million.
>Although Segway was just introduced, its financing was wrapped up many
>months ago. Kamen and his partner, Segway Vice Chairman Robert Tuttle,
>began searching for funding in 1999.
>Before hooking up with CSFB, Segway met with about five significant
>private equity or venture players, all of whom passed on the deal, Tuttle
>said. At the time, Internet mania was at its peak, and a lot of VCs
>basically weren't investing in anything other than the e-commerce,
>software and telecom fields, Tuttle said. We didn't fit in that domain,
>you might argue.
>Finally, in late 1999, an intermediary introduced Segway to Jack Hennessy,
>then head of CSFB Private Equity and the retired chief executive of Credit
>Suisse First Boston. Hennessy brought Schmertzler into the mix, and the
>two sides reached an agreement in principle on the deal structure by March
>2000. Two rounds of funding followed, in July and October.
>Schmertzler liked Segway for several reasons. It addressed a real market
>need, it used sophisticated, proprietary technology, and Schmertzler had
>confidence in Kamen and Tuttle, he said. He also liked Segway's component
>suppliers, including Delphi Automotive Systems Corp. (DPH).
>The key to Segway is its patented balancing technology, which uses
>gyroscopes and software to keep the device upright and allow the rider to
>control it simply by leaning forward or backward. Segway can travel up to
>12.5 miles per hour, and uses relatively small amounts of power.
>Soon after CSFB began talks with Segway, Kleiner Perkins came on board and
>eventually became an equal partner with CSFB. John Doerr, a Kleiner
>Perkins partner and Segway director, didn't return calls for comment.
>Segway is an unusual investment for both venture capital firms. CSFB had
>relationships with the auto industry and some Segway suppliers, but Segway
>isn't a traditional transportation project. The deal is even farther
>afield for Kleiner Perkins, which is well-known for nurturing Internet and
>more traditional tech firms.
>Even odder was the deal's clandestine nature. Kamen wanted to keep Segway
>secret to avoid the pressure of rushing a product out to market that
>wasn't ready. Also, he wanted to forestall a competitive response from
>other entrepreneurs. The secrecy made it difficult to line up investors.
>There probably would have been some very good investors there to be in
>contact with, but we never connected, Tuttle said.
>Segway was so adamant about secrecy that when Schmertzler's 11-year-old
>son tested the device last year, he had to sign a confidentiality pact.
>The boy kept his word and didn't tell anyone about Ginger, his father said
>proudly.
>The cover was partially blown last January when the Web site Inside.com
>reported some details about Ginger. Segway was soon bombarded with venture
>capitalists who wanted to invest, but Segway already had the financing it
>needed, Tuttle said.
>Now, Segway is testing its device with companies and other organizations,
>including the U.S. Postal Service and Amazon.com Inc. (AMZN). Segway plans
>to make the device available to consumers in late 2002.
>Some outsiders are skeptical. Industry and media critics have said Segway
>is potentially dangerous, and that cities won't let people use the
>transporters on sidewalks.
>If Segway flops, it won't be alone. Jesse Reyes, vice president of
>research firm Venture Economics, said there have been many cases of
>high-profile investments in new technologies that didn't pan out,
>including artificial intelligence computing during the 1980's.
>It's very rare that in any of these investments, reality lives up to the
>hype, Reyes said. Some do well, some are catastrophic failures.
>Often, the first company out with a new technology ultimately fails, and
>other companies end up doing it better, Reyes said. Palm Inc. (PALM), for
>instance, successfully brought handheld computers to market after a
>botched effort by Apple Computer Inc. (AAPL).
>But Schmertzler says Segway has many advantages, including its patents. He
>points out that CSFB has invested in the balancing technology, not merely
>a human transporter. If the human transporter doesn't work out, the
>balancing technology could be used for other applications, including
>larger devices.
>-By Peter Loftus, Dow Jones Newswires; 201-938-5267; <Email Address Redacted>
>
>===========================================
>Lee Taylor <Email Address Redacted>
>P.O. Box 600, Placerville, CO 81430
>(970) 728-3304 (970) 728-7078 fax
=========================================
Beverly Cusick, MS, PT <Email Address Redacted>
<URL Redacted>
Citation
Beverly Cusick, “Phenomenal wheelchair!!!,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 25, 2024, https://library.drfop.org/items/show/217758.
