CAMBRIDGE, Mass. (BRAIN) — Zagster, Inc., a provider of private and public-private bike sharing systems, has raised $10 million in a Series B round of funding led by Edison Partners, a growth equity capital firm.
Zagster operates more than 140 fully hosted bike-sharing programs in 30 states across the U.S. and Canada.
Zagster also expanded its board of directors by appointing: Tom Vander Schaaff, general partner at Edison Partners; Jonathan Seelig, co-founder of Akamai Technologies, former chairman of the board of Zipcar and former managing director of Globespan Capital Partners; and Chris Randles, former CEO of SpaceClaim Corp as well as MathSoft and a current venture partner at Borealis Ventures.
"With 300 percent growth in riders and programs over the past year, we've proven that our 'Bike Share as a Service' model is scalable, financially sustainable and ideally suited to meet the needs of customers across multiple markets in North America," said Timothy Ericson, the co-founder and CEO of Zagster. "This growth capital along with the expansion of our board sets the table for Zagster to enhance our product roadmap, expand our staff, and grow the organization to reach our goal of becoming the national standard in bikeshare."
In September, the company partnered with car sharing company Zipcar to create Zipbike, a bike share program for colleges and universities.
"I believe Zagster can become one of the next iconic Boston-based high-growth, disruptive companies," said Seelig. "The company is well-positioned to grow the bike sharing market by delivering programs in hundreds of communities where others can't — or won't — enabling them to continue to grow rapidly in the coming years."
