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Funding & Investment in Travel

A new era for travel startup investing

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Phocuswright has tracked and analyzed the digital travel startup landscape for over 15 years, and as of November 2024 there were nearly 8,000 companies in our Travel Startups Interactive Database. All the data presented in this report, and much more, is accessible in the online database.  

Travel startups have weathered a drastic funding downturn over the past two-plus years, but recovery is on the horizon. All signs point to a rebooting of the venture capital cycle. Yet the future may look nothing like the past. Generative artificial intelligence (GenAI) and its progeny, particularly autonomous agents, are primed to revolutionize the entire travel booking funnel as well as transform how startups and investors operate. 

Leveraging data from Phocuswright’s proprietary startups database, this report presents a comprehensive assessment and outlook for travel startups in today’s challenging funding environment.    

 Five key takeaways

  • Funding to travel startups dropped to nearly a 10-year low in 2023, coming in at $5.2 billion. Through the third quarter of 2024 (3Q24), funding rests at $4.3 billion, putting it roughly on track to be on par with 2023. 
  • 2023 marks by far the lowest activity on record when it comes to funding rounds completed.. 
  • The next era of travel startup investment may look nothing like the last. Generative AI is expected to transform the travel industry as well as how companies operate, potentially shifting industry dynamics and reducing the need for funding in the long term.
  • Funding to B2B-oriented companies in 2024 has overtaken B2C for the first time, reaching 51% of total funding as of 3Q24. This shift may be partly driven by clear use cases of generative AI in B2B areas like customer service, workflow automation and data analytics.
  • Europe leads in regional funding share in 2024, driven by growth in mobility and corporate travel sectors, while the U.S. maintains a dominant position at the country level. 

Methodology 

This report strikes a balance between analyzing funding to startups and examining recent funding raised by important players in travel tech regardless of their age. Thus, it features analysis of technology-oriented travel companies founded any time in the past three decades, and it measures funding raised by these companies over the past decade – specifically between the beginning of 2014 and the third quarter of 2024 (3Q24). 

Changes to the data and methodology:  

*In mid-2024, Phocuswright enhanced its data collection processes and added thousands of companies to the database that were not included previously. This nearly doubled the number of companies in this analysis compared to previous reports. This annual report has historically been titled The State of Travel Startups and analyzed startups founded within a certain date range (e.g., the past five or 10 years). In 2023, given that well-established companies were among the main entities raising money, we expanded the range to include companies founded at any time in the past three decades, and titled the report as The State of Travel Funding. This year, we switched the emphasis back to startups, but retained the expanded founded date range.  

To avoid skewing the analysis, companies that have raised more than $4 billion or only operate tangentially in travel (specifically, autonomous vehicle companies) were excluded from the analyzed dataset unless otherwise specified. As a result, 35 companies (e.g., Uber, Didi, Airbnb, Cruise, Waymo), which have raised $117.3 billion, are excluded.

**Funding includes publicly disclosed amounts of venture capital, private equity, crowdfunding, debt and other types of traditional funding rounds. Dollar amounts associated with IPOs, acquisitions, mergers and post-IPO investments were excluded from the analyzed dataset.

Learn more

The full report includes data and analysis of the current state of investment in travel startups, including funding rounds and average funding size, number of acquisitions per year, regional breakdown, average time for acquisition or exit and more. 



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Funding & Investment in Travel

EU Simplifies Schengen Visa Access for Frequent Turkish Travelers

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The European Commission has introduced a new set of regulations that make it easier for frequent Turkish travelers to obtain Schengen visas.

The changes apply to multi-entry short-stay visas, offering greater flexibility and longer durations for applicants with a consistent and compliant travel history.

With Turkish citizens having faced difficulties in securing Schengen visas in recent years, this development is seen as a major relief for those who frequently travel to Europe. The streamlined process is aimed at rewarding those who demonstrate responsible travel behavior and regular use of previous Schengen visas.

What the New Visa Rules Offer

The policy simplifies the visa acquisition process for Turkish nationals who have previously held and properly used Schengen visas. Travelers with a proven track record of regular travel and compliance will now be eligible for longer and multiple-entry visas, reducing both the paperwork and stress associated with repeat applications.

The graduated structure of the visa durations encourages continued lawful travel. Depending on their travel history and timing of application, Turkish citizens may now receive visas ranging from six months to five years in duration.

Visa Validity Timeline Based on Travel History

  • 6-month visa: For those who apply within one year of their last valid visa’s expiration.
  • 1-year multiple-entry visa: For applicants whose previous 6-month visa expired within the past two years.
  • 3-year multiple-entry visa: For those whose 1-year visa expired within the past two years.
  • 5-year multiple-entry visa: For travelers whose 3-year visa expired within the past two years.

The policy ensures that visa validity will never exceed passport expiration dates. Specifically, the visa’s end date must be at least three months before the passport’s expiry, ensuring alignment with EU border security regulations.

Countries Where the New Policy Applies

The revised visa rules will be recognized across all 25 Schengen member states, making travel significantly more convenient for eligible Turkish citizens. The countries are:

Belgium Bulgaria Czechia Germany Estonia
Greece Spain France Croatia Italy
Cyprus Latvia Lithuania Luxembourg Hungary
Malta Netherlands Austria Poland Portugal
Romania Slovakia Slovenia Finland Sweden

Who Is Excluded?

The new visa facilitation rules have clear boundaries. Turkish nationals applying for visas for professional reasons, such as truck drivers and other occupational categories, will not be eligible for the updated system. Similarly, third-country nationals residing in Türkiye who are not Turkish citizens will continue to be subject to the standard Schengen visa application procedures.

This limitation is designed to prioritize personal and tourism-related travel for Turkish citizens with proven histories of compliance and repeated visits to Schengen areas.

Official Statement from the Trade Ministry

Minister of Trade Ömer Bolat commented on the new measures by stating: “For those who have received a visa for the first time, in their second applications, it will be possible to obtain long-term and multiple-entry visas, starting from up to 6 months and extending to 1 year, 2 years, 3 years, and eventually 5 years.”

His statement reinforces the European Commission’s objective to reward trusted travelers by minimizing administrative burdens and maximizing convenience for repeat applicants.

What This Means for Turkish Travelers

The move reflects a broader shift in the EU’s approach to visa policy, balancing border control with traveler convenience. By easing access for compliant travelers, the Schengen zone could see increased tourism and business exchanges from Türkiye, a country with deepening ties to Europe.

Frequent Turkish travelers—especially those working in academia, business, and tourism—are likely to benefit the most. This policy could also reduce waiting times at consulates and streamline embassy workloads by lowering the frequency of repeated short-term applications.

While the new rules may not change the experience for all applicants, they mark a significant improvement for thousands of Turkish citizens who travel frequently and seek easier mobility across European borders.



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Bharat Gaurav Tourist Train To Leave On September 9 For Puri, Gangasagar & Two Jyotirlingas; Will Pass Through Bhopal’s Rani Kamalapati, Itarsi Stations

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Bhopal (Madhya Pradesh): Bharat Gaurav Tourist Train operated by Indian Railway Catering and Tourism Corporation Limited (IRCTC) will leave from Indore on September 9, 2025.

This special train will provide devotees with darshan of Puri, Gangasagar, Gaya, Varanasi, and Ayodhya, including Baba Baidyanath and Kashi Vishwanath Jyotirlingas.

In this 10 nights and 11 days journey, the train will pass through Indore, Ujjain, Shujalpur, Sehore, Rani Kamalapati, Itarsi, Narsinghpur, Jabalpur, Katni, and Anuppur stations of Madhya Pradesh. Passengers will be able to start their religious journey by boarding this train from Rani Kamalapati and Itarsi stations of Bhopal Division.

IRCTC has fixed the fares for the Yatra in three categories:
• Sleeper Class (Economy): Rs 18,600/- per person
• 3AC Class (Standard): Rs 29,700/- per person
• 2AC Class (Comfort): Rs 39,000/- per person

IRCTC has presented it as an all-inclusive package, which includes comfortable rail travel with LHB coaches, on-board and off-board pure vegetarian food, AC buses for local transport, accommodation as per the itinerary, tour escorts, travel insurance, on-board security, and housekeeping services.




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Manufacturing, AI And Publishing Attract Investor Dollars

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Want to keep track of the largest startup funding deals in 2025 with our curated list of $100 million-plus venture deals to U.S.-based companies? Check out The Crunchbase Megadeals Board.

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

For what one might expect to be a sleepy week in mid-July, this turned out to be a fairly active period for venture dealmaking. Top fundraisers included Hadrian, a developer of AI-enabled factories for aerospace and defense, and OpenEvidence, a medical AI tool. This week also brought us official confirmation of the previously reported record-setting $2 billion seed round for Thinking Machines Lab.

1. Hadrian, $260M, manufacturing: Hadrian, a Hawthorne, California-based developer of AI-enabled factories for aerospace and defense manufacturing, announced that it raised $260 million in a Series C round led by existing investors Founders Fund and Lux Capital. The financing also includes a factory expansion loan facility arranged by Morgan Stanley.

2. OpenEvidence, $210M, medical information: OpenEvidence, a medical search and AI application for U.S. clinical healthcare providers, closed on $210 million in Series B funding. Google Ventures and Kleiner Perkins led the financing for the Cambridge, Massachusetts-based company.

3. (tied) Substack, $100M, publishing: Substack, the subscription-based publishing platform for independent writers, said it raised $100 million in Series C funding, led by Bond and TCG. Founded in 2017, the San Francisco-based company has raised over $200 million to date, per Crunchbase data.

3. (tied) Perplexity, $100M, artificial intelligence: AI search startup Perplexity has raised another $100 million at an $18 billion-plus valuation, according to the Financial Times and Bloomberg. The new round for San Francisco-based Perplexity is an extension of its previous raise just two months ago at a $14 billion valuation, per Bloomberg, and seems to highlight the traction that the 3-year-old startup has had in challenging massive incumbents like Google in the search space. Perplexity recently launched a web browser to complement its AI search engine. The company has now raised $1.3 billion total, per Crunchbase data.

5. (tied) Boulevard, $80M, appointments platform: Boulevard, a business management software platform for self-care businesses, including salons and spas, raised $80 million in a Series D funding led by JMI Equity. The round values Los Angeles-based Boulevard at about $800 million post-money.

5. (tied) Bedrock Robotics, $80M, robotics: San Francisco-based Bedrock Robotics, a provider of hardware and software to enable heavy equipment for the construction industry to operate autonomously, announced it has emerged from stealth with $80 million in seed and Series A backing. 8VC 1 led the Series A, and Eclipse Ventures led the seed financing.

7. CertifID, $47.5M, fraud protection: Austin-based CertifID, a wire fraud protection platform for the real estate industry, announced it secured $47.5 million in a Series C round led by Centana Growth Partners. The financing brings reported equity funding to date to $84 million.

8. Firestorm, $47M, defense tech: Firestorm, a San Diego-based developer of manufacturing technology for unmanned aircraft systems, raised $47 million in a Series A round  led by New Enterprise Associates.

9. Unify, $40M, business software: Unify, a developer of AI-enabled tools for companies and sales teams to grow their businesses, raised $40 million in a Series B round led by Battery Ventures. Founded in 2023, San Francisco-based Unify has raised around $70 million to date, per Crunchbase data.

10. Panacea Financial, $37M, healthcare fintech: Panacea Financial, a financial services provider for doctors and their practices, raised $37 million from Valar Ventures in a Series B extension financing. Little Rock, Arkansas-based Panacea said it has processed more than $2 billion in loan applications since launching in late 2020.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of July 12-18. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman


Stay up to date with recent funding rounds, acquisitions, and more with the
Crunchbase Daily.



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