After a challenging period during which travel startup funding had largely dried up due to the COVID-19 pandemic, the sector is seeing a resurgence in investment. Notable recent rounds include Guesty’s impressive $130 million funding, Cover Genius’ $80 million raise, and Canary Technologies’ $50 million announcement in June. While this month has been relatively slow for new funding, significant movements are still happening.
In a notable development, US-based travel insurance startup Faye has successfully raised $31 million in Series B funding, increasing its total capital to $49 million. This round was spearheaded by Portage, a prominent global investment platform, with additional contributions from Lumir Ventures, F2 Venture Capital, Viola Ventures, and Munich Re Ventures. The latter also led Faye’s Series A round in 2023, which garnered $10 million.
Since its inception in 2022, Faye has continuously evolved its travel insurance app to include a range of enhanced features. The platform now offers worldwide telemedicine services, comprehensive destination vaccine and health mandate information, accelerated claim resolutions, 24/7 assistance, real-time trip monitoring, and advanced fintech solutions for payments, reimbursements, and savings.
With this latest infusion of capital, Faye plans to expand its operations across its insurance, travel, and fintech services. The company will also focus on scaling its United States headquarters in Virginia and further developing its offices in New York, Florida, and California.
Elad Schaffer, Faye’s co-founder and CEO, expressed enthusiasm about the company’s growth trajectory: “We are excited to move into a new phase of growth, creating a robust platform for looking after travelers throughout their entire journey. Those hitting the road with Faye will receive the best insurance experience with our tech-driven holistic coverage and care that enables smarter and smoother trips through personalized travel and financial solutions.”
Faye is also looking to forge new partnerships with brands, travel agencies, and distribution partners, aiming to expand its influence and reach in the travel insurance industry.
Stephanie Choo, partner at Portage Ventures, highlighted the potential in this market: “This is an under-served and often overlooked market with untapped value to capture. Portage remains bullish as ever on the next generation of fintech companies, and we are excited to back the team in their journey to build Faye into one of the world’s largest platforms dedicated to looking after travelers’ needs.”
