Travel startup funding and M&A activity in Q1 2025

While 2024 suggested a positive shift in funding for travel
startups compared to the prior year, things cooled off in the first quarter of 2025.

“[This year] is off to a slower start than any other year so
far, with under $1 billion raised as we close in on the end of the quarter.
This compares to $1.6 billion last year and $1.2 billion in 2023 at the close
of Q1,” said Mike Coletta, senior manager of research and innovation at Phocuswright.

According to Coletta, typically, the bulk of
funding goes to a small number of companies via Series A through E and
private equity rounds—and this rings true for the start of 2025. However, “Series A funding is trailing further than
usual so far.”

A…