European venture capital firm 4Founders Capital has launched a €60 million hospitality-focused investment fund, marking a strong vote of confidence in travel, hotel, and leisure startups across Spain and Southern Europe. The new fund arrives at a moment when tourism flows have stabilized, hotel investment volumes have increased, and technology adoption across hospitality has accelerated at an unprecedented pace.
This fund expands 4Founders Capital’s long-standing thesis that specialized, founder-led venture firms outperform generalist investors in operationally complex sectors. By narrowing its focus on hospitality, the firm aims to capture value where digital tools reshape guest experiences, improve margins, and unlock new revenue streams for operators.
Why Hospitality, Why Now
Hospitality has entered a new growth phase. Travel demand has rebounded strongly across Europe, especially in Spain, which continues to rank among the world’s top tourist destinations. Hotel operators now face a dual challenge: they must meet higher guest expectations while managing rising labor, energy, and financing costs.
Technology-driven startups have stepped into this gap. Founders now build tools for dynamic pricing, energy efficiency, guest engagement, revenue management, and alternative accommodation models. These companies no longer operate on the margins of the sector. They influence core operational decisions.
4Founders Capital sees this inflection point as an opportunity. The firm believes hospitality no longer behaves like a slow-moving real estate business. Instead, it increasingly resembles a data-driven service industry, where software, automation, and AI create defensible advantages.
Fund Size and Investment Strategy
The new €60 million fund will target early-stage and Series A startups. 4Founders Capital plans to write initial checks ranging from €500,000 to €3 million, with reserves for follow-on rounds. The firm expects to back 25 to 30 companies over the fund’s lifetime.
The investment team will prioritize startups that serve hotels, resorts, short-term rental operators, travel platforms, and leisure experiences. The fund will not chase consumer travel apps with high marketing burn. Instead, it will focus on B2B and B2B2C models that generate predictable revenue and long-term contracts.
Geographically, Spain will anchor the portfolio, but the fund will also invest across Portugal, Italy, France, and other tourism-heavy European markets. 4Founders Capital believes founders in these regions possess deep domain expertise and global ambition.
Focus Areas: From Hotels to Travel Tech
The fund will concentrate on several high-impact verticals:
Hotel operations and management software
Startups that streamline housekeeping, staffing, procurement, and maintenance will receive strong attention. Operators increasingly demand integrated platforms instead of fragmented tools.
Revenue management and pricing intelligence
Dynamic pricing, demand forecasting, and distribution optimization remain critical profit levers. Founders who combine data science with hospitality expertise stand out.
Sustainability and energy efficiency
Energy costs and environmental regulations push hotels to adopt smarter systems. Startups that reduce water usage, energy consumption, and waste will benefit from both economic and regulatory tailwinds.
Guest experience and personalization
Digital check-in, loyalty platforms, and personalized offers now shape brand perception. Tools that improve satisfaction while reducing staff workload attract growing interest.
Alternative accommodation and leisure models
Boutique stays, serviced apartments, and experience-led travel continue to expand. Technology that supports these formats opens new addressable markets.
Spain’s Strategic Advantage
Spain offers a unique testing ground for hospitality startups. The country combines scale, diversity, and international exposure. A single startup can pilot solutions across beach resorts, city hotels, rural tourism properties, and luxury destinations.
4Founders Capital also benefits from Spain’s maturing startup ecosystem. Talent pools in Barcelona, Madrid, and Valencia have grown deeper. Founders now scale companies faster and attract international customers earlier.
The firm’s partners have built and exited multiple startups themselves. That operational background allows them to support founders beyond capital. They actively assist with hiring, partnerships, pricing strategy, and international expansion.
Strong Hotel Investment Flows Support the Thesis
Hotel investment volumes in Spain have remained resilient despite higher interest rates. Institutional investors, private equity firms, and family offices continue to allocate capital to hospitality assets, especially in prime tourist regions.
This capital flow creates downstream opportunities for startups. New hotel owners often modernize operations immediately after acquisition. They seek technology partners that improve margins and asset value.
4Founders Capital expects this renovation and modernization cycle to continue for years. The fund positions itself to ride this structural trend rather than short-term market cycles.
Differentiation in a Crowded VC Market
Many venture firms claim interest in travel and hospitality. Few build dedicated strategies around the sector. 4Founders Capital believes specialization creates an edge.
The firm maintains close relationships with hotel groups, property managers, and travel operators. These connections help portfolio companies secure pilots and early customers. They also provide real-world feedback that shapes product development.
By contrast, generalist VCs often struggle to assess hospitality startups accurately. Metrics differ from SaaS benchmarks. Sales cycles vary. Seasonality affects revenue. 4Founders Capital embraces these nuances instead of avoiding them.
What This Means for Founders
For hospitality entrepreneurs, the new fund sends a clear signal. Capital remains available for companies that solve real operational problems and build sustainable businesses.
Founders no longer need to pitch hospitality as a side category to fintech or SaaS investors. They can now partner with a firm that understands their customers, language, and constraints.
The fund also encourages second-time founders and industry veterans to start companies. Many professionals from hotel chains, OTAs, and travel groups have begun launching startups. 4Founders Capital actively seeks these profiles.
Looking Ahead
The launch of this €60 million hospitality fund reflects broader confidence in Europe’s tourism economy and its ability to innovate. While macroeconomic uncertainty persists, travel remains a human constant. People continue to move, explore, and spend on experiences.
Technology will define which hospitality players thrive in this environment. Startups that combine operational insight with scalable tech will lead the next decade of travel.
With this fund, 4Founders Capital positions itself at the center of that transformation. The firm plans to shape the future of hospitality, one startup at a time.
Also Read – Managing People in High-Pressure Startup Environments