Articles tagged “venture capital”

Splitty's acquisition of Cancelon's assets is notable because it highlights a seemingly clever way to advertise on travel price-comparison sites. Think of it as "metasearch arbitrage."

Smaller online travel agencies try to make money by grabbing nickels and eurocent coins ahead of the steamrollers of global advertising behemoths. The underreported story of why China's largest travel company acquired a tiny Dutch travel group highlights the phenomenon.

Expect investments in travel startups to hit their lowest levels in total amounts since the global financial crisis a decade ago. But when less capital is chasing deals, persistent venture capital firms may have a better shot at nurturing long-term bets.

Warren Buffett, the billionaire investor, once said that it's "only when the tide goes out that you learn who's been swimming naked." Some of the 57 travel startups worldwide that raised funding in the first months of the year may be about to reveal all.

Silver Lake and Sixth Street likely got a very attractive deal in exchange for their investment.

Travel is a long-term megatrend because all across the globe people appreciate the value that it brings to their lives. This holds true across a vast range of human differences — cultural, geographical, religious, historical, generational, and more.

Airbnb will likely have no trouble raising money, assuming the valuation and terms are palatable to investors, but it's dubious that they will chip in a few hundred million dollars each based on the supposedly inherent advantages of Airbnb's product.

We are headed into a winter for travel startups. But travel won't be gone forever. And history teaches us that startups are often the first to pinpoint our industry’s new direction as we exit a crisis.

Airbnb has always put itself out there as not just another startup or your grandmother's online travel agency. Going the direct listing route, as opposed to a far costlier initial public offering, could fit in nicely with that narrative.

Sonder's hotel-style serviced apartments operate in that sweet spot between Airbnb homeshares and full-on hotels. There are, of course, plenty of rivals doing a similar thing, but this funding round will enable Sonder to expand its business and give it a competitive edge.