Travel Startups Raised $2.5 Billion So Far in 2016
Photo Credit: Sonder, formerly Flatbook, has rebranded to move away from subleasing and focus on the short-term rental market for travelers. Sonder
Skift Take
Things haven't looked great on paper for travel startup funding this year. Many investors have told us they feel there's a lack of originality in travel and that, combined with the global economy, likely explains what's going on.
It's been a rocky year for travel startups looking to raise funds with funding down 44 percent during the first half of 2016 and hospitality tech taking a hit. Although travel startups have raised $2.5 billion so far this year -- with $1 billon coming from the third quarter alone -- Airbnb's $850 million Series F round in August is to thank for the uptick.
With Airbnb's latest round included in the mix, 40 percent of travel startup funding for 2016 occurred during the third quarter representing a 72 percent increase in funding over the second quarter, according to data from CB Insights, a New York City-based venture capital and investment data firm.
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But if Airbnb's funding isn't considered 2016 is basically an upside down hockey stick -- non-Airbnb funding totals $150 million for the third quarter and that's a plunge from $587 million in the second quarter and $867 m
