Travel Startups Still Managed to Raise $1.4 Billion During One Turbulent Quarter

Investors poured $1.4 billion of equity fundraising across 57 travel startups during the first three months of the year, according to Skift's reporting. The deals came despite the world coming to terms with the coronavirus pandemic during the period. Oyo Hotels & Homes raised the largest sum in the quarter, with $807 million in Series F funding from RA Hospitality and a unit of SoftBank Vision Fund. The fundraising total excludes startups such as Lilium, which is building an air taxi service and making vertical take-off and landing aircraft, as companies like that are better known as aviation or mobility businesses. The first quarter results also reflected deals that had already been in the works before the coronavirus pandemic went global. The second-largest round of the period was an $82 million Series C raised by Cloudbeds, a maker of enterprise software for hotel and hostel management. The round represented settlements after more than a year of negotiations, CEO Adam Harris said. The second quarter of the year may see fewer fundings. Many venture investors will slow their investing pace, focusing instead on helping their portfolio companies conserve cash. Uncertainty is one factor. A second wave outbreak could starve the cash reserves of existing portfolio companies. Practicality is another factor. Travel restrictions, such as the 14-day isolations many countries require for foreign visitors, can hamper any in-person interactions for due diligence. An example is the story of Itilite, a business travel management startup ba