The hospitality industry is highly competitive. To thrive, businesses must be as efficient as possible as running costs are extremely high compared to other sectors. Over the last 15 years hospitality operating expenditure has increased by over 55% while pressures [mainly in Europe] to reach net zero by 2040 are adding further expense. While no one in this day and age should argue that net zero is not a desirable goal, behind the scenes, tasks that include negotiating with new and existing suppliers for low carbon alternatives, waste reduction, improving energy efficiency, and staff training do not happen on their own. Someone needs to conduct these tasks which means either employing extra staff to manage sustainability targets or existing staff must take on the extra workload.
The added staff costs and expenses involved in implementing new practices, upgrading machines, appliances, and properties, and likely paying more for low carbon supplies, all contribute to further operating expenditure. Hospitality businesses who want to attain net zero, would undoubtably benefit from any service that can reduce time and money spent in pursuit of their sustainability goals.
BeCause, a Danish startup focussing on sustainability data management for the global hospitality, travel, and tourism industries, has successfully concluded its seed round with a strategic $600,000 (€556K) investment from Dutch investor Curiosity VC. This latest funding brings BeCause’s total seed funding to $2.5 million (€2.32M), following the initial $1.9 million (€1.76M) raised in November from investors including Denmark’s Ugly Duckling Ventures and Estonia’s Superangel.io.
Strategic partnership for sustainable operations
BeCause, led by co-founder and CEO Frederik Steensgaard, reserved space in its round for a strategic investor, and Curiosity VC filled that role. As an AI-focused fund, Curiosity brings key competencies and an international network that aligns with BeCause’s vision of leveraging artificial intelligence for sustainability-focused operations in hospitality and tourism.
Frederik Steensgaard expressed excitement about the partnership, stating, Curiosity brings key competencies and an international network to the table that will prove invaluable to us as we continue to unfold how artificial intelligence can enable more sustainability-focused operations in hospitality and tourism and across our growing set of solutions,”
Automated sustainability management for hotels
BeCause’s platform allows hotels to automate the collection, analysis, and communication of sustainability efforts, streamlining the process for industry certifications like GreenKey and ensuring regulatory compliance. The platform significantly reduces the cost of repetitive tasks by up to 60%, enhancing operational effectiveness. With over 20,000 hotels worldwide using the platform, BeCause provides critical insights into sustainable investments and helps hotels meet growing consumer demand for eco-friendly accommodations.
Real-time information for informed choices
The platform also enables travel marketplaces, including Booking.com, to access real-time information about a hotel’s sustainability status through green certification labels. This empowers travellers to make informed choices aligned with their sustainability preferences.
Accelerating growth and meeting regulatory demands
The recently concluded seed round, including Curiosity VC’s investment, positions BeCause to support the European Union’s Corporate Sustainability Reporting Directive (CSRD), a pioneering regulation strengthening ESG reporting rules. The funds will also drive accelerated growth to meet the demands of global enterprise customers, including Booking.com, easyJet, Google, and Radisson Hotel Group.
“What attracted us to BeCause is that they have a clear goal and a true passion for the problem at hand. Their advanced AI capabilities further enhance their ability to drive innovation, address complex challenges, and revolutionize sustainability efforts across sectors. Looking at how far they’ve already come, their execution powers are undeniable,” says Herman Kienhuis, Managing Partner at Curiosity VC. “They have a solid growth strategy in place and are perfectly positioned to solve the needs of stakeholders in hospitality, acting not just as a compliance tool, but as a strategic asset that opens improvement opportunities and aligns the industry with the evolving priorities of a more environmentally aware society.”
Frederik Steensgaard emphasised BeCause’s role in the changing landscape of sustainability reporting, stating, “CSRD [Corporate Sustainability Reporting Directive] will transform how companies report on their sustainability. BeCause has a major role to play in ensuring hotels and tourism companies can seamlessly communicate their impact on people and the environment to their investors, governments, and the world.”
