At least a couple of startups raised funding this week. Key helps property managers source vendors for home redesign and maintenance, while Futurestay helps them run their operations more efficiently.
Travel Startup Funding This Week
Each week we round up travel startups that have recently received or announced funding. Please email Senior Travel Tech Editor Tim Mullaney at [email protected] if you have funding news.
This week, travel startups announced more than $4 million in funding.
>>Key, a travel services company, has raised $2.4 million in new equity funding, said CEO Kim Lalande.
Before this round, Key had raised $15.7 million from investors, such as ATX Venture Partners and Wildcat Venture Partners.
The Austin, Texas-based startup began a few years ago by helping travelers plan and book itineraries. It more recently has been helping property managers offer differentiated services to win more bookings. A few of its larger partners include Airbnb Plus, Invited Home, iTrip, Kid & Coe, ThirdHome, and Vacasa. For example, Airbnb has has a partnership with Key to source vendors for home redesign, repair, and maintenance.
>>Futurestay, a tech service for managers of short-term vacation rentals, has closed $2.4 million in additional funding.
BNM Ventures and New York Angels led the round. The New Jersey-based startup has now raised $6.5 million to date.
Futurestay automates guest communication, reservations, rate-setting, payments, and distribution to online travel agencies and other channels. More than 100,000 properties use its services, the company said. Skift named the company to its list of Top Travel Startups to Watch in 2018.
Skift Cheat Sheet:
We define a startup as a company formed to test and build a repeatable and scalable business model. Few companies meet that definition. The rare ones that do often attract venture capital. Their funding rounds come in waves.
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E and beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
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Photo credit: The living room of a short-term rental available on Airbnb through its Luxe program and located in Wanaka, New Zealand. Airbnb