Elude Secures Funding to Enhance Travel Booking

Elude Secures $3 Million in New Funding

The travel application, Elude, continues its growth trajectory, announcing a further $3 million in funding following a previous $2.1 million round and its launch in August.

Founding Story and Core Concept

Alex Simon, Chief Executive Officer, and Frankie Scerbo, Chief Marketing Officer, conceived the idea for the Los Angeles-based startup three years prior. Their shared enthusiasm for impromptu travel, coupled with a need for more affordable options, served as the initial impetus.

Elude functions as a mobile application focused on travel discovery, prioritizing budget-conscious searches. It demonstrates to users the extent of travel possibilities within their financial means.

Investment Details

The latest $3 million funding round was spearheaded by ATX Venture Partners, with participation from Mucker Capital, Unicorn Ventures, Upfront Scout Fund, StartupO, Grayson Capital, Gaingels, Maccabee Ventures, and Flight VC. This investment elevates Elude’s total funding to over $5 million.

CEO's Perspective on Funding

“We observed considerable momentum after our August launch, and this trend has persisted,” Simon stated in a recent interview. “Existing investors expressed support for our strategic plan and objectives.”

Addressing a Market Need

With millennials dedicating over $200 billion annually to travel, Elude aims to minimize the time spent searching for trips and maximize the time spent enjoying them. Unlike some competitors that focus solely on flights or hotels, Elude offers comprehensive flight and hotel packages.

Future Development Plans

The newly acquired funds will be allocated to expanding the engineering team to accelerate feature development. Currently available on iOS, Elude intends to launch web and Android versions in the coming months.

Further enhancements are planned, including refined personalization algorithms for improved recommendations and expansion beyond flights and hotels. The company will also increase its marketing efforts through paid advertising.

User Growth and Geographic Distribution

To date, over 25,000 users have registered to utilize the application, with a significant portion of searches originating from coastal regions, Colorado, and Texas, as Scerbo highlighted.

Investor Selection and Industry Recovery

The co-founders emphasized that the chosen investors possessed prior experience within the travel sector. With the travel industry rebounding following pandemic-related disruptions, traveler numbers are approaching 2019 levels.

“This demonstrates the positive traction we are gaining,” Simon added. “We have moved beyond proving a concept to demonstrating actual demand and engagement.”

ATX Venture Partners' Involvement

Given Elude’s user base in Texas, the co-founders found ATX Venture Partners to be a natural fit to lead the funding round. Chris Shonk, a co-founder and partner at ATX, expressed reciprocal enthusiasm for the company.

ATX's Investment Philosophy

ATX Venture Partners prioritizes investments in companies innovating within established industries, such as travel, that have demonstrated resilience and experienced prior consolidation among venture-backed entities.

Shonk pointed to emerging sectors like alternative accommodations (exemplified by Guild and Sonder) and specialized discovery engines like Elude as examples of this trend.

Elude's Brand Identity and Target Demographic

“From the outset, Elude has cultivated a distinct brand identity characterized by an edgy and engaging community, content, and overall vibe,” Shonk explained. “This approach strongly resonates with younger demographics, who allocate a substantial portion of their spending to travel.”

The Evolving Landscape of Travel

Shonk further noted that the definition of travel is undergoing a transformation. The traditional distinction between business and leisure travel is blurring, with the rise of remote work creating a hybrid model.

Startups are actively addressing this shift, seeking to accommodate the evolving needs of individuals who can work from anywhere.

Industry Potential and Elude's Vision

While this redefinition is still in its early stages, Shonk believes the travel industry is populated by passionate founders driven to solve problems they encountered as travelers. However, he suggests that many may not be envisioning sufficiently ambitious goals.

“The industry is prone to acquisitions, with numerous startups being absorbed by larger players like Booking.com or Expedia,” he added. “Currently, there is a proliferation of companies valued between $25 million and $50 million, but fewer reaching the $1 billion mark. Frankie and Alex possess a different outlook, demonstrating boldness in their vision and strategic planning, positioning them to build a $1 billion company.”