How will the pandemic reshape corporate travel?

The valuation of Airbnb soared to new heights in its debut in public markets, even while the pandemic kept revenues depressed.

Now another unicorn startup focused on the travel space is also getting an upround: TripActions, a maker of corporate travel and expense software, announced that it had raised $155 million in funding Thursday, bumping its valuation up from $4 billion in 2019 to $5 billion today even though revenue remains below pre-pandemic levels. The Series E round was led by Andreessen Horowitz, Lee Fixel’s Addition, and investor Elad Gil. Zeev Ventures, Lightspeed Venture Partners, and Greenoaks Capital also participated.

It’s an upround that would have been hard to imagine at the start of the pandemic. Multiple startups in the space took action to cut expenses, and TripActions laid off a quarter of its 1,100 employees as bookings and usage among its customers dropped 90%.

But now, the vaccine has shown investors a light at the end of the tunnel, creating a window of  time to buy into travel startups while they believe companies in the space are undervalued.

That’s part of the thinking that led Gil, a longtime Airbnb investor, to co-lead the round. The investor pointed to Warren Buffett’s famous quote: “Be greedy when others are fearful,” adding he believes travel will bounce back likely by 2022 if not by late 2021. 

By focusing on acquiring large customers and launching new features—including one that analyzes corporate expenses broadly and another that lets customers check on virus numbers in travel regions—TripActions has convinced its investors that it can be a winner after the pandemic, even if its revenue was just at 60% in the year ending January 2021 compared to its pre-virus days. And while revenue is down, its total “book of business,” a number that effectively accounts for total transactions through TripActions, grew from $2.1 billion to $3.6 billion in that same period. (“TripActions also executed extremely well in its toughtset time. When I think of travel, the two companies that stood out were Airbnb and TripActions,” says Gil.) 

For TripActions, its future business isn’t just about getting over the pandemic. The company is also betting that corporate travel trends will fundamentally change even in the most bullish scenarios. Anticipating that the remote working trend will stick even if the virus is eliminated, TripActions CEO Ariel Cohen says the company anticipates more group travel as diasporic workforces look to meet up quarterly or weekly. 

“Because of work-from-home and a more spread out workforce, [we believe there could be] more team meetings,” says Cohen. “We think there will be a greater change around business travel.”

Previously focused more on middle-sized companies, TripActions inked deals with the likes of Netflix, GameStop, and Rivian in 2020. I couldn’t help but ask: Was TripActions focusing on customers that it believed were prone to travel, even in the pandemic? 

To an extent, yes, says Cohen. But it is more focused on companies that it believes will travel in the long-term. Take electric car maker Rivian, for example: “When you’re developing a car, you need to travel—that was our assumption.”

VENTURE DEALS

- Vera Therapeutics, a South San Francisco, Calif.-based biotechnology company focused on immunological and inflammatory diseases, raised $80 million in Series C funding. Abingworth led the round and was joined by investors including Sofinnova Investments, Longitude Capital, Fidelity Management & Research Company, Surveyor Capital, Octagon Capital, Kleiner Perkins, GV, and Alexandria Venture Investments. 

- Plexium, a San Diego, Calif.-based developer of protein degrading therapeutics directed towards historically challenging drug targets, raised $35 million. Lux Capital and Pivotal BioVentures led the round and was joined by investors including The Column Group and DCVC Bio.

- OpenDrives, a Los Angeles-based data workflows  startup, raised $20 million in Series B funding. IAG Capital Partners led the round.

- Wintermute, a London-based digital assets liquidity company, raised $20 million in Series B funding. Lightspeed Venture Partners led the round and was joined by investors including Pantera Capital, Sino Global Capital, Kenetic Capital, Rockaway Blockchain Fund, Hack VC, DeFi Alliance, Avon Ventures, Fidelity Investments, and Blockchain.com Ventures.

- Ironhack, a Miami-based programming bootcamp maker, raised $20 million. Endeavor Catalyst led the round and was joined by investors including  Lumos Capital, Creas Capital, and Brighteye. Read more.

- ConsejoSano, a Los Angeles-based healthcare technology company, raised $17 million in Series B funding. Magnetic Venture led the round.

- Curtsy, a San Francisco-based maker of a clothing resale app, raised $11 million in Series A funding. Index Ventures led the round and was joined by investors including Y Combinator, FJ Labs, 1984 Ventures, and Josh Breinlinger. Read more.

- ULesson, a Nigeria-based edtech startup, raised $7.5 million in Series A funding. Owl Ventures led the round and was joined by investors including LocalGlobe, TLcom Capital, and Founder Collective. Read more.

- Creative Fabrica, an Amsterdam-based social marketplace for crafters, raised $7 million in Series A funding. Felix Capital led the round and was joined by investors including FJ labs.

- TraceAir, a Redwood City, Calif.-based construction site drone maker, raised $3.5 million in Series A funding. XTX Ventures led the round and was joined by investors including Liquid 2 Ventures, GEM Capital, GPS Ventures, and Andrew Filev (CEO Wrike).

PRIVATE EQUITY

- Brookfield Asset Management and KKR are weighing bids for a stake in Saudi Aramco’s oil pipelines, per Bloomberg. Read more.

- AEA Investors will invest in Verdesian, a Cary, N.C.-based developer of fertilizer enhancers. Financial terms weren't disclosed.

- Avista Capital Partners acquired Solmetex, a Northborough, Mass.-based provider of amalgam separators and other waste compliance products for the dental industry. Financial terms weren't disclosed.

- BayPine and Two Sigma Impact invested in Penn Foster, a Boston-based training company. Financial terms weren't disclosed.

- BBH Capital Partners invested in American Spraytech, a Branchburg, N.J.-based provider of aerosol products. Financial terms weren't disclosed.

- Caring Brands International, a portfolio company of Levine Leichtman Capital Partners, acquired Interim HealthCare, a San Diego, Calif.-based home health and hospice franchisor. Financial terms weren't disclosed.

- Charger Investment Partners invested in B&B Coffeehouse, a Sandy, Ut.-based operator and franchisor of coffeehouses. Financial terms weren't disclosed.

- Colfax Creek and Charter Growth Capital recapitalized Premier Engineered Products, an Abingdon, Va.-based die cast parts and tooling producer. Financial terms weren't disclosed.

- Clayton, Dubilier & Rice agreed to invest in S&S Activewear, a Bolingbrook, Ill.-based distributor of imprintable apparel and uniforms. Financial terms weren't disclosed.

- Cohere Capital invested in CCS, a Portland, Or.-based brand of streetwear and skateboard equipment. Financial terms weren't disclosed.

- Janus, backed by Clearlake Capital Group, acquired G&M Stor-More, an Australian self-storage company. Financial terms weren't disclosed.

- LongueVue Capital recapitalized Summit Plastics, a maker of polyethylene blown film and bags. Financial terms weren't disclosed.

- Mercer Global Advisors, backed by Oak Hill Capital and Genstar Capital, acquired Hart Capital Management, a Spokane, Wash.-based asset management firm. Financial terms weren't disclosed.

- Orchard & Vineyard Supply, a portfolio company of Clearview Capital, acquired Davis Pump & Electric Motors, a Washington-based water pump installation and repair services company serving orchards and vineyards. Financial terms weren't disclosed.

- Red Arts Capital acquired Radius Logistics, a Canadian logistics services provider. Financial terms weren't disclosed.

- Vesta Modular, backed by Kinderhook Industries, acquired Innovative Modular Solutions, a Oswego, Ill.-based provider of temporary and permanent modular buildings. Financial terms weren't disclosed.

- Vestar Capital Partners invested in Dr. Praeger’s Sensible Foods, a Elmwood Park, N.J.-based  maker of plant-based frozen and refrigerated foods. Financial terms weren't disclosed.

- Welsh, Carson, Anderson & Stowe invested in Revel Systems, an Atlanta, Ga.-based point of sale maker. Financial terms weren't disclosed.

EXITS

- Haemonetics Corp. acquired Cardiva Medical, a Santa Clara, Calif.-based manufacturer of vascular closure systems, for $475 million. Cardiva, backed by investors including EW Healthcare Partners, previously filed for an IPO.

- Proto Labs (NYSE: PRLB) agreed to acquire 3D Hubs, an Amsterdam-based online manufacturing platform for as much as $330 million. 3D Hubs has been backed by investors including Balderton Capital and EQT Ventures.

- mPulse Mobile agreed to acquire The Big Know, a Minneapolis-based digital learning company backed by LFE Capital. Financial terms weren't disclosed.

- A subsidiary of Colfax Corp. (NYSE: CFX) acquired Trilliant Surgical, a Houston-based manufacturer and marketer of foot and ankle orthopedic implants, from The Catalyst Group. Financial terms weren't disclosed.

- Roca Sanitario acquired RG International Bathroom’s bathroom furniture division from H.I.G. Capital. H.I.G. will retain a stake. Financial terms weren't disclosed.

- Bridges Consumer Healthcare acquired  Clarion Brands, a Trevose, Pa.-based dietary supplements company, from Swander Pace Capital. Financial terms weren't disclosed.

OTHER

- Indian stock exchanges gave Future Group, the India-based retail company, the go ahead to sell some $3.4 billion in retail assets to Reliance Industries. Read more.

- Charter Next Generation, a Lexington, Oh.-based packaging maker, may be up for sale in what could value it at over $4 billion. CNG is backed by Leonard Green & Partners and Oak Hill Capital, per Bloomberg. Read more.

- Best (NYSE: BEST), a Chinese logistics firm valued at about $830 million, is weighing a sale, per Reuters. Alibaba backs the firm. Read more.

- Fyllo acquired DataOwl, a Scottsdale, Ariz.-based cannabis retail point-of-sale marketing and loyalty company. Financial terms weren't disclosed.

IPOs

- Mobility, a German online car rental and retail company, is preparing for an IPO in the country that could value it between €1.3 billion to €1.4 billion ($1.6 billion to 1.7 billion), per Reuters. Hg backs the firm. Read more.

- Mytheresa, the German e-commerce company, raised $407 million in an IPO of 15.6 million (12.8% insider sold)  ADSs priced at  $26 apiece. 

- Bioventus, a Durham, N.C.-based maker of products for musculoskeletal conditions, re-filed for an IPO. It now seeks to raise $100 million. EW Healthcare Partners backs the firm. Read more.

SPACS

- Payoneer, a New York-based online payments company, is in talks to go public via merger with FTAC Olympus Acquisition Corp., a SPAC. The deal could value the firm over $2.5 billion, per Bloomberg. Read more.

- Compute Health Acquisition, a healthcare-tech-focused SPAC, filed to raise $750 million. Omar Ishrak, chairman of Intel, chairs the company. Read more.

- HH&L Acquisition, a SPAC seeking a healthcare target in Asia, filed to raise $300 million. Fenglei Fang, founder of HOPU Investments, chairs the company. Read more.

- ScION Tech Growth II, a tech-focused SPAC founded by ION Investment Group, filed to raise $300 million. Read more.

- Altimar Acquisition Corp. II, a SPAC by HPS Investment Partners, filed to raise $300 million. Read more.

- Fusion Acquisition II, a financial services-focused SPAC, filed to raise $300 million. Jim Ross, a senior advisor to State Street, chairs the company. Read more.

- Queen's Gambit Growth Capital, a sustainability-focused SPAC, raised $300 million. Victoria Grace, a founding partner at Colle Capital Partners, founded the SPAC alongside Agility Public Warehousing Company. Read more.

- TZP Strategies Acquisition, a tech-focused SPAC from TZP Group, raised $250 million. Read more.

- G Squared Ascend I, a SPAC formed by G Squared Capital focused on a tech target, plans to raise $250 million.