Funding dollars to travel tech startups in Europe grew 150% in just under five years, from 2012 to 2016 year-to-date (10/17/2016). So far this year, investors have put roughly $526M into these companies, already an all-time high, and deals are on pace to hit a five-year peak through the end of the year.
However, despite the overall peak in funding as a result of deals in the first two quarters of this year, lower deal and dollar amounts in Q3’16 signal that investors may be pulling back.
The UK, Germany, and France saw the greatest number of deals in travel tech in Europe between 2012 and 2016 year-to-date. The same three countries also saw the largest share of dollars invested in the space within Europe.
Scotland-based company Skyscanner, valued at $1.6B, has raised more money than any of Europe’s other travel tech startups, at $197M. Rounding out the top three for funding amounts are the price comparison and travel booking companies: GoEuro ($146M raised) and GetYourGuide ($96M raised).
Annual funding trends
Funding to Europe’s travel tech startups is already at an all-time-high for the year through 10/17/2016. At the current run rate, deal volume through the end of 2016 is projected to come in at about 25% above last year’s total.
Quarterly deals and dollars
Looking at quarterly funding to Europe’s travel tech startups shows that dollars and deals are trending down in the 2nd and 3rd quarters of 2016. In fact, the boom in funding in 2016 is primarily due to a stand-out first quarter this year, and a relatively strong Q2. Q3’16 saw both dollars and deals drop.
Dollars and deals by country
Three countries in Europe — the UK, Germany, and France — took the greatest share of deals and dollars invested in travel tech startups on the continent since 2012. Rounding out the top five countries with the largest share of dollars are Russia and Finland, respectively. No other country took greater than a 5% share of total dollars invested in Europe’s travel tech startups.
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