Each week, we bring together travel startups that have recently received or announced funding. Please email Sean O’Neill, Travel Technology Editor-in-Chief, at [email protected] if you have any funding news.
This week, travel startups announced more than $ 4 million in funding.
>>Bandwango, a start-up focused on providing destination marketers with the tools to get travelers to spend more, has raised $ 3.1 million in seed funding.
Next Frontier Capital led the round. Signal Peak Ventures, SaaS Ventures and Ocean Azul Partners also participated. The Murray, Utah-based startup had already raised $ 700,000.
The startup says it helps marketers at more than 200 destinations educate visitors about things to do and experiences. It typically combines offers from restaurants, retailers, and attractions into digital bundles that tourism marketers in Iowa, Newport Beach, or elsewhere sell to visitors.
For example, the city of Grand Rapids in Michigan used Bandwango to create a “culture pass», Which offers three days of discounted access to the city’s attractions, such as its public museum and a brewery, for one price. A pass can be given as a gift, which a traveler can redeem months later on a trip.
A traveler usually provides personal information in exchange for receiving the pass via their smartphone. Bandwango collects visit data to refine tourism marketing campaigns.
He says his mobile-focused marketing campaigns have resulted in 248,000 registrations and exchanges at local locations.
>>Fly, which calls itself a ‘work-as-a-service business’, has raised around $ 1.65million (£ 1.2million) in seed funding.
The founders of OneFineStay, Transferwise and Shutl have participated in the funding in recent months.
The London-based startup offers remote work-accessible homes and hotels from which individuals and teams can work, making it easier for business travelers to find workplaces in unfamiliar locations.
Today, Flown sells memberships to individuals, but plans to offer memberships to businesses, said co-founder and CEO Alicia Navarro.
>>The Capsule Hotel, a Korean travel start-up, has closed a fundraising round via the crowdfunding platform, Wadiz.
The company has built two capsule hotels in tourist areas of Seoul.
Skift Cheat Sheet:
We define a startup as a company formed to test and build a repeatable and scalable business model. Few companies meet this definition. The few that often attract venture capital. Their fundraising rounds come in waves.
Seed capital is money used to start a business, often run by angel investors and friends or family.
Series A funding usually comes from venture capitalists. The cycle aims to help the founders of a startup ensure that their product is something that customers really want to buy.
B series funding is primarily for venture capital firms that help a business grow faster. These fundraisers can help recruit skilled workers and develop profitable marketing.
C series financing usually involves helping a business grow, for example through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
D series, E and beyond These mostly mature companies and the fundraising cycle can help a company prepare to go public or be acquired. Various types of private investors could participate.
Photo credit: Grand Rapids Public Museum on Pearl Street in Grand Rapids, Michigan. The Grand Rapids tourism board used technology from start-up Bandwango for a recent promotion. Grand Rapids Public Museum