skift take
Travel startups haven't raised a lot of funding this year, but they've raised much more than they did at this time last year.
— Justin Dawes
It's been a very long few weeks for travel startups. Eight of those companies announced $1.1 billion in funding in the past two weeks.
Most of that comes from Wayve, which has raised just over $1 billion for its robotaxi technology. Other significant funding, although not as much as $1 billion, went to travel insurance and renewable jet fuel companies. A small portion of the funds also went to a new luggage brand and a company that 3D prints airplane interior parts.
Wave: $1 billion
Wave, which is testing self-driving cars for ride-hailing and other purposes, has raised $1.05 billion in Series C funding.
The round was led by SoftBank Group, with support from Microsoft and AI chip company Nvidia.
SoftBank's other travel and transportation investments include Uber, Chinese ride-hailing app DiDi and its robotaxi venture, WeWork, Oyo, GetYourGuide, Klook, and Yanolja.
UK-based Wayve develops a type of artificial intelligence aimed at improving the way self-driving cars and robots interact with the world. The company said it envisions a future where AI allows vehicles to drive fully autonomously, an upgrade from the current AI-assisted driving model.
The company's main customers are car manufacturers and vehicle owners. The company sees an opportunity to partner with London's growing ride-hailing industry. The company also focuses on the parcel and grocery delivery industry.
Wayve has been testing its technology in cars on UK roads since 2018, particularly in partnership with grocery delivery services.
“AI will revolutionize mobility. Vehicles will now be able to interpret their surroundings in the same way humans do, enabling enhanced decision-making that promises higher safety standards. Possibility brings change. We can eliminate 99% of traffic accidents,” Kentaro Matsui, managing partner at SoftBank Investment Advisors, said in a statement.
Cover genius: $80 million
Cover Genius, a platform used by travel companies to offer insurance to their customers, has raised $80 million in Series E funding.
Spark Capital led the round, with support from Dawn Capital, King River Capital, and G Squared.
Based in New York City, Cover Genius serves companies in travel and multiple other industries. This service allows businesses to offer insurance to their customers individually or as part of a bundled package.
The company says the service includes “cancellation for any reason” protection and instant payments in more than 90 currencies for approved claims. Other travel insurance options cover airfare in the event the airline goes out of business, emergency medical assistance on extended stays, personal electronics for business travelers, delayed baggage, and more.
Travel clients include Booking Holdings, Ryanair, Skyscanner, Icelandair, Uber, Agoda, Etraveli, Despegar, Hopper, HomeToGo, Volaris, Spirit, EaseMyTrip, and more.
The company also works with live entertainment companies such as SeatGeek to offer customers insurance coverage for ticketed events and various types of rideshare services.
The funds will be used to grow the business, add services, and enhance technology such as insurance sales systems and claims processing using AI.
Run the Jet: $20 million
Renewable jet fuel company LanzaJet has raised $20 million from Groupe ADP.
The Illinois-based company says its technology can convert low-carbon ethanol into jet fuel. The company opened a small plant in Georgia in January that it says will be able to produce 10 million gallons of fuel annually from raw materials and waste.
LanzaJet raised $30 million from Southwest Airlines in March and is working with a Southwest Airlines-owned company to produce renewable ethanol.
LanzaJet has a goal of producing 1 billion gallons of SAF by 2030.
Home time: $6.6 million
Hometime, which manages vacation rental properties listed on Airbnb, has raised $6.6 million (A$10 million).
Fifth Estate Asset Management led the round, with support from AS1 Growth Partners, NAB Ventures, Asia Principal Capital, and OneVentures.
Sydney-based Hometime manages all aspects of vacation rental businesses on behalf of owners based in Australia and New Zealand, including Airbnb listings, guest management, cleaning, styling, photography and more. It has said.
The funds will be used to grow the brand organically and to acquire other local businesses.
Naya Holmes: $3.1 million
Naya Homes, a property management company for vacation rental owners in Mexico, has raised $3.1 million.
The round was led by Primary Venture Partners with support from BBG Ventures and other investors.
Naya Homes says it manages many aspects of vacation rental properties for owners, including listing management, cleaning and maintenance across multiple booking sites.
The startup manages more than 400 properties in Mexico, including Puerto Vallarta, Riviera Nayarit, Los Cabos and Mexico City. The company plans to expand to 10 other cities in Mexico, including Cancun and Playa del Carmen.
you. Smart.Item: $1.5 million
you. Smart. Thing., which helps businesses suggest low-carbon travel routes to customers, has raised $1.5m (£1.2m).
West Midlands Co-Investment Fund led the round, with support from several angel investors including a former executive from route suggestion app Citymapper.
The UK-based startup said destination, venue and live event managers can subscribe to the service for consumers. Users enter their origin and destination, and the service suggests a personalized route. These can include greener options using technology to estimate and track carbon emissions. Users with disabilities can also request more accessible routes.
The Birmingham 2022 Commonwealth Games contracted the service, which led to 10% of users at the event requesting accessible routes, the startup said.
Icon: $1.2 million
Icon, which makes luggage and travel gear, has raised $1.2 million in seed funding.
DSG Consumer Partners led the round with support from a group of angel investors.
India-based Icon says it is targeting the growing “mass premium segment” of Indian travelers. Products include hard luggage, backpacks, and handbags.
The funds will be used to add new products, hire and grow the business.
AM Craft: $652,000
AM Craft, which provides manufacturing services to the aviation industry, has raised $652,000 in pre-seed funding.
Change Ventures led the round with support from Bad Ideas Fund.
Latvia-based AM Craft designs, manufactures and delivers aircraft interior components such as seats and overhead bins. The company uses his 3D printers to manufacture its products and has a library of pre-approved parts.
CompanyStageLeadRaiseWayveSeries CSoftBank Group$1.05B Cover GeniusSeries ESpark Capital$80MlanzaJetUnspecifiedGroupADP$20M HometimeUnspecifiedFifth Estate Asset Management$6.6M Naya HomesUnspecifiedPrimary Venture Partners$3.1M You. Smart. Thing.UnspecifiedWest Midlands Co-Investment Fund$1.5 millionIconSeedDSG Consumer Partners$1.2 million AM CraftPre-seedChange Ventures$652,000
Skift cheat sheet
Seed capital is the money used to start a business, often led by angel investors, friends, and family.
Series A funding typically comes from venture capitalists. The round is aimed at helping startup founders make sure their product is something customers actually want to buy.
Series B funding is primarily aimed at venture capitalist firms to help companies grow faster. These funding rounds will help recruit skilled labor and develop cost-effective marketing.
Series C financing is typically aimed at supporting a company's expansion, such as through acquisition. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E, and Beyond These primarily mature business and financing rounds can help companies prepare to go public or be acquired. Different types of retail investors may participate.
Photo credit: Photo: Wayve self-driving car on the road.
