Thatch Secures $3M to Empower Travel Creators
Thatch Secures $3 Million to Empower Travel Creators
Following a challenging period, the travel sector is experiencing a resurgence, and Thatch is establishing itself as a key player by providing a platform for travel content creators to monetize their expertise.
The company recently announced a $3 million Seed II funding round, spearheaded by Wave Capital. Notable participation included Freestyle VC’s Jenny Lefcourt and Marc Randolph, a co-founder of Netflix.
This latest investment brings Thatch’s total funding to $5.2 million since its inception in 2018 by West Askew, Abby West, and Shane Farmer.
From Trip Planning to Creator Enablement
Before the onset of the global pandemic, Thatch operated as a subscription-based consumer travel service, connecting travelers with dedicated trip planners. However, the industry’s near standstill in 2020 prompted a strategic shift.
The co-founders recognized a growing need to support travel creators – individuals who share their travel experiences on social media – in effectively connecting with their audience and capitalizing on the value of their recommendations, insights, and perspectives.
“We observed a willingness among consumers to compensate individuals for their time and specialized knowledge,” Abby West explained to TechCrunch. “Consumers are increasingly turning to platforms like Instagram and YouTube for travel advice, often directly messaging creators for information. We aim to formalize this interaction, enabling creators to receive payment and deliver an enhanced experience to their followers.”
Facilitating a New Travel Economy
Askew and West emphasize that travel creators influence billions of dollars in consumer travel spending. Thatch’s free mobile application equips them with the tools to establish and grow their own travel-focused businesses.
The app allows creators to curate, share, and soon, sell interactive travel guides and personalized planning services. Thatch generates revenue by taking a small commission on each transaction.
The pandemic, while disruptive to travel, provided Thatch with the opportunity to refine its app. The company is now concentrating on expanding its creator base and implementing marketing strategies to attract more users to the platform.
The new funding will be allocated to hiring additional engineers, developing new content, and launching features for selling or receiving tips on interactive guides created within the app.
(opens in a new tab)
Growing Creator Network and Positive Trends
The app currently boasts a collective audience reach exceeding 12 million users among its existing creator base. A noticeable increase in app usage during July indicates a positive trend within the travel industry, according to Askew.
With the seed funding secured, Thatch is preparing to launch its monetization and booking features, enabling creators to begin earning income. A strong first quarter is anticipated in terms of potential bookings.
The founders are also focused on attracting larger creators and fostering a supportive network for them, recognizing the need to treat them as the small businesses they are and provide resources for growth.
“Many travel companies have failed, but our approach is distinct,” West stated. “Our focus on person-to-person connections, specifically with creators who have established and trusted audiences, sets us apart in the current market.”
Investor Confidence and Market Opportunity
Riley Newman, general partner at Wave Capital, explained that he and his colleague, Sara Adler, both former Airbnb executives, were introduced to Thatch through an existing investor.
Wave Capital typically invests in marketplace businesses at the seed stage, and this investment represents their first foray into the travel sector. Newman noted, “We have extensive experience in this area from our time at Airbnb, and this is an opportune moment to re-enter the industry.”
The travel market is expected to experience substantial growth in the coming years, fueled by pent-up demand following the pandemic. Newman also highlighted the parallel trajectory of the creator economy, which is democratizing travel planning in a manner reminiscent of Airbnb’s impact.
“Travel planning is a well-established practice, but this presents a novel and compelling angle,” Newman added. “We are impressed by the founding team’s complementary skills and energy. Given their approach, this is a favorable time for travel, and their market strategy is both appropriate and necessary.”
