Derive Ventures
Early Stage Venture Fund Advancing Travel & Hospitality
ActiveVenture Capital
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Financial History
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Leadership Team
Key people at Derive Ventures.
Early Stage Venture Fund Advancing Travel & Hospitality
Key people at Derive Ventures.
Derive Ventures is an early-stage venture capital firm headquartered in San Francisco that specializes in investing in the next generation of hospitality, experiences, and real estate technology[1][3]. Founded in 2021 as a spin-out from Thayer Ventures and KSL Capital Partners by Tyler Carrico and Mike Scott, the firm has grown to manage over $45 million in assets under management[3]. The firm's mission is to bridge the gap between technology and travel by supporting entrepreneurs who are shaping the future of the industry[3].
The firm operates with a focused investment thesis centered on identifying opportunities where travel and hospitality intersect with adjacent sectors like fintech and real estate[2]. Derive targets seed and Series A stage companies, with an average check size of $250,000, and aims to build a portfolio of approximately 50 companies in its first fund[1]. The firm has already deployed over $10 million across 15 portfolio companies, demonstrating active engagement in the travel tech ecosystem[1].
Derive Ventures emerged from a strategic partnership between two seasoned travel tech investors. Tyler Carrico and Mike Scott founded the firm in 2021 after meeting at a Phocuswright conference, leveraging their combined experience from Thayer Ventures and KSL Capital Partners[1]. This origin story reflects a deliberate decision to focus exclusively on the travel and hospitality sector at a time when many investors were skeptical about the industry's recovery prospects following pandemic-related disruptions.
The founders recognized that despite travel's challenges, significant opportunities existed in emerging technology categories including loyalty platforms, experience technology, labor management solutions, and artificial intelligence applications[1]. Rather than viewing the industry's difficulties as a deterrent, they positioned Derive to capitalize on the structural transformation happening within hospitality and travel businesses seeking technological modernization.
Derive's primary differentiator is its laser-focused investment thesis on travel and hospitality technology. Unlike generalist venture firms, Derive brings deep domain expertise and operates within an ecosystem of industry leaders, advisors, and strategic partners who have shaped the travel industry[5]. This specialization allows the firm to identify opportunities that generalist investors might overlook and provide portfolio companies with access to a network of executives from major hospitality brands, airlines, and travel platforms.
The firm's $250,000 average check size positions it as an active early-stage investor capable of leading seed and Series A rounds without requiring co-investment for smaller opportunities[1]. This approach enables Derive to move quickly and build meaningful ownership stakes while maintaining a diversified portfolio strategy. The firm's willingness to make larger "conviction checks" into companies like MarginEdge demonstrates flexibility in deploying capital when compelling opportunities emerge[1].
Derive explicitly targets companies operating at the crossroads of travel, hospitality, and other sectors like fintech and real estate[2]. Portfolio companies such as Mews (a property management system transforming real estate into hospitality-centric models) and Bilt Rewards (a fintech loyalty platform) exemplify this strategy[2]. This approach creates opportunities for portfolio companies to achieve significant scale by applying travel technology innovations to adjacent markets.
Derive has positioned itself as "the most active early-stage investment firm dedicated to travel and hospitality," a distinction reinforced by its 2024 formation of Thayer Investment Partners with Thayer Ventures[3]. This consolidation strengthened the firm's ability to support portfolio companies across multiple funding stages while maintaining its early-stage focus.
Derive Ventures operates at a critical inflection point in travel technology investment. The firm is riding several converging trends: the post-pandemic recovery and digital transformation of hospitality, the emergence of millennial and Gen Z consumer preferences reshaping travel experiences, and the application of AI and automation to traditionally labor-intensive hospitality operations[1].
The timing is particularly significant because the travel industry—historically fragmented and technology-resistant—is undergoing structural modernization. Hotel operators, travel platforms, and experience providers are actively seeking technology partners to improve operational efficiency, enhance guest experiences, and adapt to changing consumer demographics[1]. Derive's positioning as a specialized investor gives it outsized influence in shaping which technologies and business models gain traction within this transformation.
The firm also plays an important ecosystem role by validating travel tech as a venture-scale opportunity. By deploying capital aggressively into the sector and building a portfolio of 15+ companies, Derive signals to other investors, entrepreneurs, and industry stakeholders that travel technology represents a legitimate venture opportunity despite the sector's historical challenges. This legitimacy effect extends beyond Derive's own portfolio, elevating the entire travel tech category.
Derive Ventures is well-positioned to become a defining force in travel technology investment over the next decade. The firm's consolidation into Thayer Investment Partners in September 2024 represents a strategic evolution that strengthens its ability to support portfolio companies through later-stage growth while maintaining early-stage deal flow[3]. This structure allows Derive to capture more value from successful portfolio companies and provide more comprehensive support to entrepreneurs.
Looking ahead, several trends will shape Derive's trajectory. The integration of artificial intelligence into hospitality operations will likely become a central investment theme, as the firm explicitly identified AI as a key opportunity area[1]. Additionally, the convergence of travel with fintech (loyalty programs, payments, insurance) and real estate (alternative accommodations, mixed-use properties) will continue driving deal flow into companies operating at these intersections.
The firm's ambition to reach $50 million in assets under management and deploy capital into 50 companies suggests Derive is building toward a significant platform within travel tech venture capital[1]. As the firm matures and its portfolio companies achieve exits and scale, Derive's track record will likely attract larger institutional capital, enabling larger fund sizes and greater influence over industry innovation. The question for investors and entrepreneurs is whether Derive can maintain its specialized focus and operational support while scaling—a challenge that will define its long-term impact on the travel technology ecosystem.
Key people at Derive Ventures.
