The State of Travel Startups: What's In, What's Out
Skift Take
If some of the well-intentioned founders of travel inspiration startups might be accused of creating pie-in-the-sky business plans, investors are pouring their money into more grounded enterprises, with lots of sharing economy ground transportation startups attracting the highest funding on average.
In some respects, the last few years have been a Golden Age for travel startup funding even when the company is not named Uber or Airbnb.
PhoCusWright tracked 743 digitally oriented travel startups from 2005 to 2013 that were funded or had substantial products, and found that they attracted $4.8 billion in funding from angels, venture capitalists and strategic acquisitions (but excluding acquisitions by public companies and IPOs.)
That funding has accelerated over the last few years.
Of that $4.8 billion, travel startups raised 68% of it, or $3.3 billion, from 2011 to 2013.
The $3.3 billion figure includes funding deals for the likes of Trivago, Airbnb, Lyft, Uber, Qunar, eHi Car Rental, Kuaidadi, and numerous others, writes PhoCusWright's Douglas Quinby, research vice president, in a post, but it excludes mega funding rounds generated in 2014 for Airbnb and Uber.
Depending on the travel startup's vertical and the specific company, the venture money may or may not be pouring in, and any talk of a Golden Age for travel startup fundi
