With no signs that growth in VC funding will slow this year, 2021 could be a record year for deals and investments.
The industry is buzzing with news that Montreal and Boston-based travel app Hopper has just received another round of fresh funds. Capitol One led this round that injects another $170M into the company, which appears to have set its sights on the B2B travel space. If funding is flowing into companies that are focused on B2B travel, as the pundits state that business travel will take some time to return, then many other startups may be extremely attractive to the VC community.
It appears as if the global travel market is beginning to soften, and the news is increasing the likelihood that VCs will start pumping money into the travel and hospitality industry as “revenge travel” appears to be on the horizon. Individuals have been stuck in their houses for over a year now, vaccines are available, and we are definitely seeing the light at the end of the tunnel. People will want to stretch, spread their wings, and travel once again with this optimistic view.
In other startup news, Getaway received $42M in a Series C round led by Ceteras. Getaway is fueling some travelers’ needs, not all, in search of a secluded and private location. Getaway’s destinations are known as Outposts and consist of furnished cabins of no more than 200 square feet available to rent nightly and equipped with linens, towels, basic kitchen equipment, and, by design, without Wi-Fi. This is indeed a unique idea not only for those who want to truly disconnect but for those who are looking for a unique travel experience.
On the hotel technology front, it appears as if there will be a renewed investment here as well. Allegion Ventures has expanded its strategic portfolio with an investment in Mint House, a startup that revolutionizes the hotel experience for modern business travelers through technology-aided amenities secure mobile check-in keyless entry, digital concierge, customized pre-stocked grocery delivery, and more. The details of the investment have not been disclosed, but it shows that the VC community is once again very interested in travel and hospitality.
Many airlines are starting to add routes to their current sparse offering, which is a great sign. Cruise lines are coming out of hibernation, and it appears as if several cruises will set sail in a few months. Also, Disney is re-opening in CA in April and will be adding back 10000 jobs. All of this is fantastic news.
So, expect to see many more transactions in the coming months as travel continues to heat up and people begin to book trips believing that the future is once again bright.