Historically, travel startups have been underfunded
when compared with startups in other sectors.
According to a
new report from Phocuswright and
McKinsey
, over the past 15 years, the travel and tourism industry received
around 1 percent of funding for startups across all industries, yet it
contributed more than 10% of global GDP in 2019.
Nevertheless, there are many success stories, with
some travel startups that have attracted substantial investments even through
the pandemic.
Of course, the recent
collapse of Silicon Valley Bank
and issues at other financial institutions raise new questions about the
outlook for startup funding.
To get an understanding of where there are opportunities
for travel startups and what investors are looking for, PhocusWire editor in
chief Mitra Sorrells spoke to McKinsey partner Nina Wittkamp and associate partner Evgeni
Kochman.
The two share data from the recent report and outline
the five themes shaping trends in travel startup funding.
Watch the full discussion below.
*This interview was recorded prior to the collapse of Silicon Valley Bank.
McKinsey on... Innovation in travel