Charting The Trends – global network of travel and mobility tech startups grew significantly over past decade, but sector has been hit harder by COVID pandemic than any other industry vertical
The travel and mobility tech sector has arguably been hit harder by the pandemic than any other industry vertical, according to a paper from Lufthansa Innovation hub and TNMT, the data-driven digital innovation in travel and mobility market intelligence specialist. But still, it identifies in its annual startup financing report about the changing innovation dynamics in the travel and mobility tech landscape post pandemic, that despite this existential crisis, thousands of startups around the globe “continue to work fearlessly on innovative solutions that make travel more efficient, frictionless, and interconnected”.
As of mid-2021, the ‘Startup Investment Trends in Travel and Mobility Tech’ shows a register of more than 2,800 startups (up +5% versus 2020) across six major company clusters active in the travel and mobility Tech arena. “Clearly, many founders have identified new opportunities to reinvent the post-pandemic travel and mobility Tech world,” it notes.
The report identifies investment trends in the travel and mobility tech startup ecosystem to try to illustrate how the crisis has impacted startup financing and what this might mean for the future of the industry.
Critical for startup founders to bring their ideas to market is VC financing. In 2020, just over USD23 billion was invested in startups across travel and mobility tech, according to the report, the lowest level since 2015 and the expansion stage of the sector and down almost half from the pick levels seen in 2018 (USD42 billion). This level demonstrates that despite the challenging conditions in 2020 “the appetite to invest in travel remains,” notes the report.
Furthermore, the drop in total funding of -14% compared to 2019 “appears bearable,” it acknowledges considering the dramatic impact of the pandemic on the overall industry. On the bright side, 2021 is currently expected to bring back full-year funding amounts to USD44 billion, the report projects, indicating that the startup ecosystem has fully recovered and is ready to “overcome the flattening investment trends of the previous few years and return to its long-term growth trajectory”.
READ THE FULL STORY via CTC – Corporate Travel Community: Charting The Trends – global network of travel and mobility tech startups grew significantly over past decade, but sector has been hit harder by COVID pandemic than any other industry vertical