Thatch has created a niche in the sector after a tough year. It allows travel professionals to monetize their recommendations, allowing them to make more money.
Today, the company announced a $3million Seed II round by Wave Capital. Freestyle VCs Jenny Lefcourt joined them, as well as Marc Randolph, Netflix's co-founder. This brings Thatch's total investment to $5.2million since the company was founded in 2018 by Shane Farmer, Abby West, and West Askew.
The company was a subscription-based service that connected travelers to someone who would plan their trip from start to finish. In 2020, the industry was at a standstill and the co-founders realized that there was a greater need to assist travel creators. They wanted to make it easier for them to connect with their followers on social media and to capture the value of the tips, recommendations and perspectives they share.
Abby West, a TechCrunch reporter, said that we noticed consumers willing to pay for expertise and time. They are increasingly turning to Instagram and YouTube to find information instead of visiting travel agencies. This formalizes the relationship so that travel agents can be paid and the end users can have a better experience.
Askew and West claim that travel creators are responsible for billions in consumer travel spending. The Thatch mobile app gives them the tools to create their own travel-based businesses. They can curate, share, and soon sell interactive guides and planning services. Thatch takes a small percentage from all transactions and makes money when creators make it.
Although the pandemic had a negative impact on the travel industry, Itch was able to build its app. Now it is focusing on the creator side of the app and marketing to attract more creators. This is where the company will get the funding: They plan to hire additional engineers, create new content, and launch new features that allow creators to earn tips or sell their interactive guides.
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Askew stated that among the 12 million travel professionals who use the app, the audience is more than 12 million. The company also saw an increase in usage in July which is a sign of the industry's improvement.
The company will launch the monetization, booking, and marketing features to make creators get paid. It is expecting a strong quarter for potential bookings. Askew stated that the founders want to attract bigger creators and create a network. He also said that Askew believes they should be treated like small businesses and would love to help them grow.
Unfortunately, there are many travel companies out there, but West stated that they do things differently. Our people-to-people approach is unique. In this instance, we have people with a built-in audience who can be trusted. This is something that we don't see elsewhere in the space.
Riley Newman, Wave Capitals general partnership, said that he and Sara Adler, his other general partner in Wave Capitals, were introduced by Onechs investors to the company.
His company invests in marketplaces during the seed stage. Thatch's investment is his first in the travel industry. He said, "It is one that we know well from Airbnb. It is a good time to get back into the sector."
Newman stated that the travel market is set for growth, particularly with the increased demand for travel after the pandemic. The creator economy is also on the same track to democratize travel planning in the same way that Airbnb did. Wave Capital was inspired by this vision.
Newman said that although travel planning is a well-established industry, this new angle offers a unique perspective. When we look at the founding team, Abby and West have complementary backgrounds and energy. Their approach is right and necessary, making this a great time to travel.
