If the first quarter of 2025 proved lackluster for travel startup funding with only about $1 billion going into newcomers in the space, the second quarter slipped further.
It seems all the headlines around tariffs as well as the political uncertainty and global conflict may have put investments on hold, with only about $800 million going into travel startups, according to Phocuswright’s Travel Startups Interactive Database.
If funding levels continue along this trend, the total come end of 2025 could be around $4 billion, significantly less than 2024’s $5.5 billion and a far cry from 2021’s record $16 billion.
The lack of funding for travel startups as well as the scarcity of exits were discussed during a recent interview with Nick Cocks, founder and managing partner of Singapore-based Velocity Ventures. He touched the current attitude to risk, boardroom paralysis and IPOs being shelved.
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