Vacation Rental Startups Attract $100 Million in Funding So Far This Year

Vacation rental startups attracted nearly $100 million in venture capital funding during the first quarter of 2016 with most of the funding concentrated across the U.S. and Europe. The alternative accommodations sector attracted the most funding of any sector in 2015 and it appears that momentum has continued during the first four months of this year. Skift has tracked 11 accommodations startups since January that received investments ranging form $1 million to $35 million [see chart below]. Our tally puts the vacation rental sector at just more than $100 million in funding during the past four months of 2016. Eight of the 11 startups are Europe-based but more than half of all funding -- about $62 million -- went to three U.S.-based startups. Five of the startups are consumer-facing and focus on helping travelers book vacation rentals while three help property managers manage their bookings or homes and the other three serve both. Venture capitalists have plenty of reason to throw cash at vacation rentals and entrepreneurs are trying to take advantage. Last month TripAdvisor acquired London-based Housetrip, for example, to supplement the vacation rental brands it already owns or controls. That's was overshadowed by Expedia Inc.'s $3.9 billion acquisition