Hi there,
Before we get started, we have two exciting updates to share with you.
Number 1: Our June edition of the TNMT Audio Briefing is officially LIVE.
My dear colleague Ly and I take a closer look at our biggest research piece of the past month.
You can check out the 15-minute episode on TNMT.com or go to:
🎧 Spotify: Click here.
🎤 Apple Podcast: Click here.
Number 2: The Lufthansa Innovation Hub’s Research Team is growing. Hip, hip, hooray!
We’re looking for an Analyst based out of Singapore who will focus on the latest and greatest from the Asian Travel and Mobility Tech ecosystem.
- You will accelerate the Lufthansa Innovation Hub’s knowledge base through in-depth analyses of the most relevant market trends.
- You will get to work with the best in the business, folks who happen to be altogether awesome people!
And the best part is you might even contribute to this newsletter one day.
If this sounds like you or someone you know who might be interested, here is the job description including the application form.
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We can’t wait to hear from you!
Now, let’s talk data and trends.
Enjoy,
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Lennart Dobravsky
Editor-in-Chief
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Airlines in the Spotlight
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There are several ways to look at the current airline and airport fiasco.
For us, it’s mostly proving what we have seen coming for years and have not shut up about, especially in this newsletter.
The aviation industry lacks digital innovation.
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It’s quite simple.
Digital innovation plays an important role—although not the only one—in order to fix many of today’s ops and customer-service issues.
But it’s not only this short-term need alone that makes innovation mission-critical.
A turn towards long-term innovation could open up new growth opportunities for airlines to switch from being, basically, commodity providers into fully diversified transportation platforms.
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Active engagement with startups is a viable path forward to foster such innovation.
When we speak of engagement, we’re not talking about the startup meetups and non-sense pitch competitions that people brag about on LinkedIn.
Rather, we are thinking about investing in a range of growth bets that could transform the way airlines transport passengers from A to B and service them along the door-to-door traveler journey, in turn, improving customer experiences and offering up new revenue opportunities.
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Many of our readers share this view.
If this was not the case, our ranking of leading startup investors among airlines wouldn’t be one of the most-visited research pieces on TNMT.com.
Therefore, we have decided to expand this offering.
Our Intelligence Analyst Jhordy built a kick-ass data dashboard providing various angles to better understand where the leading startup-oriented airlines place their innovation bets.
You can check out the dashboard right here.
Click on the visual below and scroll down.
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We continue to make progress as we prepare our annual flagship report on the latest startup dynamics in Travel and Mobility Tech.
This will be our fourth report on VC funding trends in TNMT startups.
With Q2 investment figures almost in the books, here is another quick preview of what to expect.
- Headwinds in the broader financial markets have caused funding levels in 2022 to dramatically drop vs. last year in our sector.
- While Q2 of 2021 saw VC deals worth north of $10 billion USD, Q2 of 2022 has “only” recorded about $5 billion USD worth of investments.
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However, one category, in particular, continues to raise massive amounts of funding.
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About half of total 2022 funding in Travel and Mobility Tech so far has been raised by Ground Transportation ventures.
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Here’s the most interesting part
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Prior to the pandemic, ride-hailing services would score most of these deals among Ground Transportation providers.
Now, autonomous mobility ventures are attracting the most VC dollars.
Here are the five biggest funding rounds of the past six months:
- Innovusion kicked off 2022 with a $118 million USD Series C in January.
- Wayve was able to raise $200 million USD in February.
- WeRide raised $393 million USD in January and another $400 million USD in March with Robert Bosch being among the lead investors in both events.
- Zongmu got access to slightly more than $150 million USD in March.
- And Apple’s Drive.ai secured $300 million USD in April.
Could these major deals indicate a tipping point to come in terms of market readiness for autonomous driving technology?
If you’re curious to learn more, sign up for the report’s waiting list.
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The TNMT Winners And Losers
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While most tech companies have suffered badly over the past six months, the nosedive of Travel and Mobility Tech companies in 2022 is less extreme, as is evidenced by our recent health check of the TNMT sector.
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Here are some numbers to prove this
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Since April 2022, the equal-weighted TNMT Index has only dropped slightly (-3%) while the equal-weighted version of the S&P 500 dropped by more than 11% during the same period.
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This level of stability among the Travel and Mobility Tech ecosystem has several positive takeaways in regards to the overall health of our sector.
One of those insights: The travel investor community continues to have faith, especially in smaller travel and mobility players.
Such faith has been exemplified through the successes of a handful of promising companies, which have shown hardly any signs of struggle over the past few months.
These include, for example, EaseMyTrip, Donkey Republic, and BlueBird (Indonesia), all of which have had their stock prices increase during the height of the 2022 stock-market depression.
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When we expand the time frame all the way back to the beginning of our TNMT Index launch, which took place on January 25, 2022, there are even more overperformers, which you can see below.
However, the table simultaneously exposes five of the most dramatic Travel and Mobility Tech failures of 2022.
Micromobility provider Bird leads the pack, having lost more than 80% of its stock value since late January.
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For a more comprehensive deep dive into the ups and downs of leading startups-turned-public-companies in the Travel and Mobility Tech arena, check out our full analysis here.
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Our Recommended Must Reads
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MAJOR TRAVEL FUNDING – It’s been a tough few years for Omio, the Berlin-based travel search and booking platform that saw 98% of its revenues evaporate overnight when COVID-19 hit Europe back in spring 2020. But the company kept on trucking and has found some light at the end of the tunnel.
 Read more on TechCrunch
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IN-FLIGHT METAVERSE – Practical explainer on how VR and metaverse technology offers airlines great revenue potential, if they can overcome operational issues.
Read more by Airline Revenue Economics
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CAR-FREE CITIES – People hate the idea of car-free cities—until they live in one. Removing cars from urban areas means lower carbon emissions, less air pollution, and fewer road traffic accidents. So why are residents so resistant?
Read more by WIRED
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AVIATION FUNDING – With a $100 million fund, aviation investment firm 777 Partners eyes tech startups to democratize aviation. The firm recently acquired two travel technology companies to grow a portfolio of airlines and travel tech firms, including Air Black Box, Bonza, Flair Airlines, and the Value Alliance.
Read more by WebInTravel
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AEROSPACE STARTUPS – Startup aerospace companies seeking to disrupt existing aviation markets and emerging air mobility concepts have attracted over $14 billion worth of investments over the last decade.
Read more by Avascent
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AUTONOMOUS TRUCKING – Waymo, Aurora, UPS, and Luminar are among a group of 34 autonomous vehicle developers to pressure the government to allow autonomous trucking in California.
Read more by TechCrunch
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Most Recent Venture Capital Deals
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Overair – the eVTOL startup from California secured $145M in Series B funding from Seoul-based Hanwha Systems and Hanwha Aerospace. The funds will reportedly go towards development of an experimental aircraft prototype called Butterfly.
Omio – the German operator of a travel platform to compare and book trains, busses, and flights raised $80M in Series E funding. The company last raised funds in 2020, pushing it to unicorn status.
SHARE Mobility – the provider of mobility services enabling companies to organize employee transport options garnered $12M in Series A funding. The deal was led by Iron Gate Capital and Renewal Funds and pushed the company’s pre-money valuation to $20M.
Kolors – the Mexican intercity bus network raised $20M raised in Series A financing in a deal led by UP.Partners. The funds will reportedly be used to accelerate expansion in Latin America and enable cross-border travel into the US.
Air Doctor – the Jerusalem-based startup enabling travelers to easily access local medical services secured $20M in Series A funding. The round was led by Lightspeed Venture Partners.
Duve – the Tel Aviv-based guest experience tech provider formerly known as Wishbox raised $10M in Series A funding in a deal led by XT Hi-tech. This brings the company’s total raised to close to $14M.
Zipp Mobility – the developer of a micromobility application raised close to $6.5M in early stage venture funding. The deal was led by Fasanara Capital and otherwise undisclosed investors. Reportedly, the funds will be used to expand operations in Ireland, UK, and mainland Europe.
Journee – the UK-based developer of a tour booking platform utilizing a matchmaking process to recommend personalized trips to travelers garnered $2.3M in early stage VC funding. The deal was led by Fuel Ventures.
Showplace – the product placement solution for rental hosts raised $2M in seed funding by Matchstick Ventures, Taurus Ventures and Boost VC.
SkySquad – the platform enabling travelers to book airport assistance ranging from carrying luggage to navigating the check-in and boarding process garnered $1M in seed funding. The deal was led by Elevate Capital.
Airflow.aero – the developer of ultra-short takeoff and landing aircraft utilizing hybrid electric propulsion (eSTOL) was acquired by Electra.aero in a vertical acquisition consolidating the market for eSTOL and reportedly expanding Electra.aero’s order book to almost 800 units.
SECRA – the marketing tech provider for hosts, rental agencies, and destinations was acquired by Berlin-based vacation rental platform HomeToGo in its third acquisition this year. This acquisition marks an extension of HomeToGo’s existing stake in the company (previously at 19%) by the remaining 81%. The deal details were not disclosed.
Whistle – the developer of a guest messaging platform for hotels was acquired by Cloudbeds, the one-stop-shop hospitality management platform. The deal details were not disclosed.
Datavision Technologies – the provider of a real-time business reporting solution for hospitality was acquired by myDigitalOffice, the cloud-based hotel performance management platform based in th US, with support from its financial sponsor Cove Hill Partners. After acquiring Focal Revenue in April, this is the company’s second buyout in 2022.
Flatty – the property management company managing 20 apartments in Italy was acquired by Altido.
A&A Apartments & Boats – in another ploy to increase its inventory, the vacation property provider managing 31 apartments in Italy and a boat rental service was also acquired by Altido, along with Flatty (see above).
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