Over the last four years, the travel and tourism sector has seen unprecedented change forced upon it. As tourism numbers have started to recover, adjusting to the new normal is an ongoing challenge for the industry. Added to the aftermath of COVID, travellers are becoming ever more conscious of sustainability issues. Travel and tourism companies are quickly recognising that environmental and cultural concerns are not just growing numbers of laws and regulations, but also selling points that are rapidly climbing in importance among tourists. This was highlighted in a 2022 Statista survey that showed that over 80% of tourists believe sustainability in tourism to be important.
Now “BeCause”, a Danish startup revolutionising sustainability data management for the global hospitality, travel, and tourism sectors, has secured $1.9 million (€1.75M) in seed funding. The round, co-led by Denmark’s Ugly Duckling Ventures and Estonia’s Superangel.io, is aimed at meeting the growing demand for BeCause’s solutions and accelerating the company’s growth trajectory. Also participating in the round are individual investors; serial exit entrepreneur Sean Brown (UK), Director of Business Development and Partnerships for fintech unicorn Circle.com, Sean Evans (UK), and private investor Patrick Patrong (DK).
Strategic funding details and company growth
The investment encompasses a $708,000 (€650K) open tail-end along with the $1.9 million secured for strategic investors to participate on equal terms. Frederik Steensgaard, BeCause co-founder and CEO, emphasised their intent to explore additional partnerships, seeking further expertise, stating, “We have retained the possibility of adding another investor to this round and hope to find a partner that has experience with high-growth startups in the impact space, particularly those with a background in B2B SaaS models, travel and big data API, to help accelerate our mission even further”
Having already garnered a $450,000 angel investment earlier this year, BeCause has now raised a total of $2.6 million (€2.4M). This fresh injection of funds will fuel the company’s rapid expansion as it caters to the escalating demand from major enterprise organisations and global travel brands, including Booking.com, easyJet, Google, Radisson Hotels, and TUI.
Headquartered in Copenhagen and founded in 2018, BeCause serves as an enterprise software company, streamlining sustainability data flow across the travel, tourism, and hospitality sectors. With collaborations spanning 20,000 hotels and key partnerships with entities like Radisson, GreenKey, and Booking.com, BeCause empowers stakeholders to make informed decisions driving positive change for people, the planet, and profits.
Sustainable solutions in travel
BeCause operates as a vehicle for change in an era where sustainability and regulatory compliance are paramount. The company’s innovative AI-powered platform enables hotels, travel brands, and marketplaces to streamline and simplify their sustainability data management. Automating tedious tasks such as manual data collection and facilitating seamless communication among various stakeholders elevates transparency and drives cost reduction across the industry.
Positive impact and market potential
A June forecast from research and advisory company Forrester, predicts the global green market’s cumulative spend to be $325 trillion by 2050. With travel and transportation accounting for a significant share, this signifies great potential for the BeCause platform to empower responsible choices and positive impacts.
Andreas Green Rasmussen, General Partner at Ugly Duckling Ventures, expressed excitement about BeCause’s potential to elevate sustainability reporting in the hospitality and tourism industries. “We’re very excited about BeCause’s ability to improve sustainability data collection and reporting for the hospitality and tourism industries. It’s a massive addressable market which thus far has lacked a purpose-built solution with the analytical capabilities to help players supercharge their positive impact on the people, planet, and profits,”
Kärt Siilats, Venture Partner at Superangel.io, emphasised their belief in BeCause’s potential, “We came in as a co-lead on this fundraising round because we believe in the power of BeCause to increase certified sustainability and decrease greenwashing in the accommodations sector. We are also very impressed by how fast the team has built a product that some of the world’s biggest brands are comfortable using.”
Clientele and expansion plans
With a substantial client base of over 20,000 hotels and collaborations with more than 50 certifiers and 15 travel booking platforms, including industry giants like Booking.com and GreenKey, BeCause is primed to expand its reach. Frederik Steensgaard highlighted the company’s commitment to not only catering to the hospitality industry but also venturing into corporate travel and destination management, reflecting their versatility and adaptability, “This newest round of funding allows us to continue our work with stakeholders in the hospitality industry and gives us the ability to respond to the massive interest in our sustainability data hub from adjacent industries like corporate travel and destinations and meetings.”
Steadfast amidst challenging times
Amid a challenging climate for startups, marked by decreased capital investment and an increase in closures, BeCause remains commitment to reducing the environmental impact of travel. “We’re thankful to Ugly Duckling Ventures, Superangel and all our investors for putting their faith in us and our solution, which is critical to making travel greener and reducing its impact on the environment,” says Steensgaard.
