Skift Take
This week, travel start-ups announced more than $60 million in financing. Principles included short-term rental remain in the U.S., travel services in Vietnam, and online travel sales in Russian-speaking markets.
Sean O’Neill, Skift
This week, travel start-ups announced more than $60 million in funding.
>> Hopin, a virtual occasions unicorn, raised $450 million in Series D financing, co-led by Arena Holdings and Altimeter Capital. Get the information at Event MB.
>> VNlife, the Vietnam-based moms and dad company of VNpay (a QR code payment network), has actually raised more than $250 million in a Series B funding round.
This funding, led by General Atlantic and Dragoneer Investment Group, will benefit the startup’s subsidiary system VNTourism, which runs a fast-growing domestic online travel group, VNTravel.
This online system has actually served more than 5 million customers so far throughout brands such as MyTour. Its Tripi brand name uses technology to travel bureau. The startup likewise runs Vietnam Airlines’ mobile app.
>> Aviasales, a travel cost contrast search website that has actually been focused on Russian-speaking tourists, raised $43 million.
Personal equity firm Elbrus Capital and venture firm iTech Capital made the financial investment. See Skift’s story.
>> Frontdesk, a next-generation short-term rental brand, closed a $7 million venture round of funding.
Stormbreaker Ventures led the round. This latest funding brings the Milwaukee, Wisconsin-based start-up to $18 million in overall funding.
“The influx of capital will drive more development to both our management and our technology businesses, satisfying the demand that is in our lap with short-term stays now going beyond pre-pandemic numbers,” stated Kyle Weatherly, co-founder and CEO at Frontdesk.
The business runs more than 700 completely handled suites in 160 buildings across 35 U.S. cities. It has more than 250 workers. Frontdesk anticipates to double its portfolio in 2021 while likewise turning successful in 2022.
“Not only has actually Frontdesk been successful in accomplishing rapid scale, however they have done so in a manner that is 5 to 10 times more capital-efficient than their peers, showing significantly superior underlying unit economics,” said Stormbreaker Ventures’ Handling Partner Said Mia.
“Sonder, for instance, required 35 times more capital to attain just eight times Frontdesk’s scale,” according to Mia.
Frontdesk likewise plans to invest more in its software application service, Frontdesk Flex, which serves expert short-term rental property supervisors with tools, such as a home management system, a direct booking engine, and a dynamic pricing algorithm.
Since May, Frontdesk apartment suites can now be scheduled through Residence & Villas by Marriott International.
>> Elude, a travel discovery and booking app, has disclosed that it has actually raised $2.1 million in financing.
Mucker Capital, Unicorn Ventures, Upfront Scout Fund, StartupO, Grayson Capital, and Flight VC have actually invested.
The Los Angeles-based start-up said it’s “the only travel discovery and booking platform that permits anybody to plan journeys in line with their spending plan, instead of area or cost.”
The app for Apple gadgets offers a “spontaneous budget-first travel online search engine that offers access to global flights and lodgings” and consists of “curated trip bundles and future trip recommendations based on consumers’ preferences and interests.”
| Business | Stage | Lead | Raise |
|---|---|---|---|
| Hopin | Series D | Arena Holdings, Altimeter Capital | $450,000,000 |
| VNlife | Series B | General Atlantic, Dragoneer Financial Investment Group | $250,000,000 |
| Aviasales | n/a | Elbrus Capital, iTech Capital | $43,000,000 |
| Frontdesk | n/a | Stormbreaker Ventures | $7,000,000 |
| Elude | n/a | $2,100,000 |
Skift Cheat Sheet:
We define a startup as a company formed to evaluate and develop a repeatable and scalable company model. Few companies meet that definition. The rare ones that do frequently bring in venture capital. Their funding rounds can be found in waves.
Seed capital is cash used to start a service, frequently led by angel financiers and pals or household.
Series A financing is generally drawn from investor. The round aims to assist a start-up’s creators ensure that their item is something that customers truly wish to purchase.
Series B funding is generally about venture capitalist firms helping a business grow quicker. These fundraising rounds can help in recruiting competent workers and developing cost-effective marketing.
Series C financing is generally about assisting a company expand, such as through acquisitions. In addition to VCs, hedge funds, financial investment banks, and private equity firms often take part.
Series D, E and beyond These mainly fully grown companies and the financing round may assist a company prepare to go public or be acquired. A variety of types of private financiers might get involved.