Articles tagged “thayer”

Thayer, the best-known VC firm that invests in travel startups, is essentially merging with a newer fund called Derive. The deal is being pitched as a way to "drive innovation in travel tech," which is VC-speak for "we want to make money off the next big thing in travel apps."

It's the latest validation of the subscription model in travel. Inspirato, which has 12,500 customers paying for its luxury travel subscription products, is merging with Thayer's special purpose acquisition company, or SPAC.

This is now the third "blank check" company in three months to say it will buy and invest in travel companies. The sudden spike in such financial innovation underscores investor faith that the travel sector offers many bargains and promising opportunities right now.

Expect investments in travel startups to hit their lowest levels in total amounts since the global financial crisis a decade ago. But when less capital is chasing deals, persistent venture capital firms may have a better shot at nurturing long-term bets.

To understand the startup Beekeeper, think of workplace communications tools like Slack or Microsoft Teams. The service helps hourly workers without desktop computers, such as housekeepers, stay up-to-date. The fresh funding underscores a recent boom in hotel tech investment.

Despite the recent attempts at corporate venture capital by JetBlue, Booking.com, and other big players, many travel companies prefer to invest in startups via traditional venture funds instead.

The global distribution world has long offered vacation rentals to travel agents but the investments by Amadeus Ventures and former Sabre CFO Jeff Jackson in BookingPal symbolize new and more serious interest.