Hybrid Hospitality Meets Crowdfunding
Skift Take
For any travel company that leans on a membership model, offering a tiny slice of equity is a cost-effective way to grow an army of loyal guests — but only if the brand is strong enough. If institutional investors continue to shy away, crowdfunding could take off in 2023.
Outsite, a membership-based hospitality company that focuses on remote workers, has raised $1 million through an alternative method: crowdfunding.
The Santa Cruz-headquartered startup turned to Wefunder to raise the cash, giving investors a slice of equity in the company from $500. Their investment will convert into equity in a future of round of funding, usually led by an institutional investor, or when there is an exit. The venture exposes about 2.5 percent of Outsite's $40 million value.
It reached its $1 million goal after launching just a week ago, but CEO Emmanuel Guisset described the decision as a “roll of the dice.”
That’s because investor appetite has waned since the beginning of the year, with many travel companies in particular delaying or pulling out of plans to go public. The buzz around special purpose acquisition companies has subsided too.
Outsite’s fundraising efforts also come as global markets face up to the possib
