Phocuswright Europe 2023: Travel investors on the outlook for funding
Phocuswright Europe moves to a new location – Barcelona – next month, but the program will still include the in-depth discussions and insightful analysis attendees have come to expect. One of the most popular topics on Center Stage each year is the outlook for travel investments from leading venture capitalists.
And as industry professionals from around the globe gather for the event in mid-June, this year’s session will be one not to miss given the economic unrest around the globe in the past year.
Even before the collapse of Silicon Valley Bank in the United States in mid-March, the first quarter of this year was on track to be markedly down for funding to startups.
The final tally was only $421 million raised in the quarter, in line with the broader downturn driven by challenges including rising interest rates, geopolitical conflicts and tech market instability, but a sign of a different environment this year compared with recent ones.
According to Phocuswright manager of research and innovation Mike Coletta, “If travel startup investment maintains the same run-rate as in Q1, that would imply $1.6 billion raised in 2023, putting funding back on par with 2015. Not the direction anyone was hoping for, I’m sure.”
At the same time, innovation across the industry has taken an accelerated track since the start of the year, largely driven by developments related to generative AI and ChatGPT.
And it’s not just established companies such as Expedia and Trip.com that are taking action, there are also many startups moving fast to integrate the artificial intelligence technology and to create new solutions with it.
So where are the opportunities for investors? In a Center Stage session at Phocuswright Europe, three of the industry’s leading investment professionals – Lucile Cornet, partner at Eight Roads Ventures; Bobby Demri, managing partner of ROCH Ventures; and Christoph Schuh, partner at Lakestar – will join Coletta to discuss the outlook for travel funding.
