Millions of dollars of investments
flow into travel startups each year.
Companies focused on
hospitality, transportation and the travel booking experience have held the top
three spots for funding in the last several years, but in recent years two other
sectors have come into the view of investors: business travel and the in-trip
Nina Wittkamp and associate partner Evgeni Kochman say this shift is an
indication that those making decisions about where to invest see opportunities
for innovation in these sectors.
“And it’s interesting
that we see this at a time when business travel was close to zero during the
pandemic,” Wittkamp said.
“But I think it also shows
how investors are seeing through some of these cycles and are looking at
overall maturity level or innovation potential in these sectors regardless of
economic or sector performance in one or two specific years, which I think is
The findings are included
in a report
produced by McKinsey in collaboration with Phocuswright.
In a conversation with
PhocusWire editor in chief Mitra Sorrells to discuss the findings, Wittkamp and
Kochman explain some of the patterns they are seeing for funding by sector,
such as hospitality, aviation and mobility, and by investor type – venture capital,
private equity, corporate investment and public funding.
Watch the full discussion below.
McKinsey on... Investment patterns in travel
Read the full report from
McKinsey and Phocuswright, "Travel startups: Disruption from within – or