Rapid market adoption, differentiated “lock-to” model and proven experience combine to accelerate expansion of dockless bike share platform for municipalities
PRINCETON, NJ – FEBRUARY 21, 2018 -- Edison Partners, the growth equity investment firm, today announced leading a new $15 million growth investment in Zagster, the leading provider of modern, flexible bike share services in the U.S. The company will use the funds to expand sales and marketing efforts to meet customer and partner demand for its new Pace brand in additional markets.
Zagster has the largest number of bikesharing sites in the U.S., operating more than 200 programs in 35 states and making its bikes available to more than 6.5 million people every day. Bike-sharing networks in the U.S. are a $2 billion addressable market as more municipalities and communities look to emulate the benefits of bike-sharing programs in cities like New York and Boston.
“Zagster built its business first, with more than 200 systems already established in close partnership with municipalities across the U.S. Their hybrid model — blending the predictability of dedicated bike racks with the freedom of not needing to use them — is unique, and their record of strong customer support and satisfaction appeals to communities looking for a best-in-class bike share program,” said Tom Vander Schaaff, General Partner at Edison Partners, who led the investment.
Edison has now invested $20 million in the company. Since Edison’s initial investment in January 2017, Zagster has experienced nearly 300 percent compound annual growth of its deployed bike fleets.
Vander Schaaff adds: “Zagster has strong logo additions, bookings growth and has also more than quadrupled its revenue over the last two years. They’re signing volumes of new customers and increasing existing accounts at a rapid pace and well ahead of plan. Our additional investment will enable their team to grow at scale and execute its model and new Pace brand across their existing and expanding footprint.”
“We’re thrilled to have Edison by our side as we continue to scale our growth across new municipalities and markets. The Edison team has been instrumental in helping us refine our business model and go-to-market approach to differentiate Zagster and capture market share in the bike sharing space,” said Tim Ericson, CoFounder and CEO, Zagster.
Based in Cambridge, Mass., Zagster designs, builds, and operates bike shares for cities, universities and real estate properties. Its technology platform enables a scalable, turnkey managed bike and rack service that gives municipalities control to address their various maintenance, safety and regulatory needs.
Edison Partners has financed and guided more than 200 private companies. Actively investing from its eighth fund, recent investments include MoneyLion, VirtualHealth, Signet Accel, LookBookHQ and Bricata.
Founded in 2007, and headquartered in Cambridge, Mass., Zagster operates more than 200 bike shares across 35 states. Zagster pioneered the smart bike platform that enabled bike sharing to flourish in communities of all types and sizes nationwide. The company’s goal: To make the bike the most loved form of transportation in every community.
More information about Zagster and its programs can be found at http://www.zagster.com.
About Edison Partners
For more than 30 years, Edison Partners has been helping CEOs and their executive teams navigate the entrepreneurial journey and build successful companies. Through the unique combination of growth capital and the Edison Edge platform, consisting of operating leverage, the Edison Director Network, and executive education, Edison employs a holistic approach to accelerating growth and creating value for businesses ($5 to $20 million in revenue) in financial, healthcare and enterprise technology sectors. Edison investment objectives also include: buyouts, recapitalizations, spinouts and secondary stock purchases. Edison’s active portfolio has created aggregate market value exceeding $10 billion. Its long-tenured team based in Princeton, NJ manages more than $1 billion in assets throughout the eastern United States.