Why do Business Travel startups attract new investors? – TOM.rejse

Why do Business Travel startups attract new investors?  – TOM.rejse

The young shoots of Business Travel are on the rise and attract many investors, primarily foreigners. But what is the cause of this attraction for BT startups, especially in times of crisis? If the economic situation is favorable for investment, innovation is more than ever at the heart of the issues.

Spendesk

Rodolphe Ardant, CEO and CEO of Spendesk

In January 2022, a few days apart, Spendesk and TravelPerk, two startups specializing in Business Travel, achieved unicorn status following a new fundraising of more than $ 100 million. A valuation then exceeding one billion dollars, for young shots whose activity has nevertheless been undermined in recent months. For Spendesk, if this new status does not change the company’s DNA, becoming a unicorn has made it possible for it to achieve fame: “In terms of recruitment, this new status allows us to reach out to new talent, especially internationally, and promote our business to them. Becoming a unicorn allows us to make them understand that they are embarking on a solid adventure “, recently entrusted Rodolphe Ardant, CEO of the Young Admission, to our colleagues from DéplacementsPros. Above all, the Spanish TravelPerk wanted to accelerate its international development, especially in Europe and the United States. At the same time, the French company Fluctuo also completed a new financing round for 1.6 million euros with 574 Invest, the SNCF investment fund and Statkraft Ventures.

More international investors

With ever-increasing fundraising, the question that arises is: what drives investors, especially foreign ones, to invest so much in French or European travel startups? For Laurence Ruiz, co-founder and partner of the auditing firm Orbiss: “ There is currently a huge amount of money available in the funds, which means that there is a lot of liquidity ”. Rodolphe Ardant adds that “because (or thanks to) the pandemic, central bank policies have provided sufficient liquidity to pressure them to invest”. As for the attraction of French Tech (and not just in the travel sector), all of this is linked to a context where innovation and transformation are a real underlying trend: “All this is happening in Europe. Our economy is changing and attracting more foreign investors. The dynamics are the same as in the US 10 years ago, which favors this enthusiasm. Investors say to themselves: ‘Well, the same thing is happening for a a few years ago in the US, we need to invest in Europe ‘”.

ORBISS a company in the United States to guide French companies

Laurence Ruiz, co-founder and partner of the auditing firm Orbiss

The co-founder of Orbiss concludes: “We observe that in the United States, the best valuations are often French, and I think all of this has been driven by President Emmanuel Macron’s policies for five years. French Tech seduces in the United States, but also in Asia.”. It is a fact that French technology is popular! With more than 20,000 startups, the French ecosystem raised 11.6 billion euros in 2021, ie + 115% compared to the previous year. In one year, it has also spawned 12 new unicorns, compared to just 3 in 2020, with record collection for Sorare, a $ 680 million startup specializing in cryptocurrencies.

Digital transformation at the heart of the challenges

A dynamic that today pushes young shoots to develop and industries to accelerate their digital transformation: “The innovation role is the very essence of the start-up. It aims to use technology to enable a market to do things differently. Is our role to transform the industry? In addition to the industry, it is rather our way of working and our relationship with the company that is being transformed, especially in terms of financial management, ” had then explained the CEO of Spendesk.

For Laurence Ruiz, many startups have taken advantage of this crisis to find their market: “The markets have finally recovered fairly quickly because many companies have seen their model accelerate during the crisis. There has been a real resurgence of interest in innovative solutions, especially in everything related to the management of business travel expenses or their organization. In the United States, business travelers have returned. As much as before, I do not think, but the workers fly regularly again. The recovery is gradual.

Opening photo: @Bruce Mars

Also read:

Leave a Comment