Deals & Dealmakers:
Adventure-Travel Firm Gets Funding For New Company
By Susan Carey
11/02/1999
The Wall Street Journal
C22
(Copyright (c) 1999, Dow Jones & Company, Inc.)
CHICAGO -- IExplore Inc., a Chicago-based Internet start-up that is
developing an online company aimed at the burgeoning adventure-travel
market, is expected to announce today that it received first-round
venture capital funding from media giant Tribune Co., and Bear Ventures,
a New York equity investment fund.
George Deeb, a former investment banker for Credit Suisse First
Boston who founded iExplore last year, said when the online service is
launched at the end of March, it will be the only one-stop resource for
travelers wanting to buy products and trips for adventure and so-called
experiential travel. Those activities include mountain climbing, scuba
diving, bicycling, kayaking, rafting, ecotours, whale watching, safaris,
cruises and bird watching. The service, which will derive commission
income from tours, gear, apparel and research material sold online, also
will operate a 24-hour help desk staffed by experts in the activities
and destinations for sale.
Mr. Deeb declined to disclose the amount of the investments made by
Tribune's strategic investment arm, Tribune Ventures, or by Bear. Nor
would he discuss the size of their stakes.
Andrew Oleszczuk, president of Tribune Ventures, also declined to
disclose the company's stake, but said it is "substantial." Tribune
Ventures was formed in 1995 to invest in and form partnerships with new
media and technology businesses, and help build Tribune's own
interactive businesses. Tribune Ventures has equity in e-commerce
companies ranging from America Online Inc. to Food.com to Peapod Inc.
Mr. Oleszczuk said iExplore is Chicago-based Tribune's first foray into
tourism.
Bear, a fund backed by private bank Midland Financial Group of
Oklahoma City, confirmed that it invested in iExplore but wouldn't
elaborate. Bear founder and managing director Philip Erdoes said he
likes the adventure-travel business because it is booming, highly
fragmented and the barriers to entry are low for a consolidator such as
iExplore.
Mr. Deeb said the idea for iExplore, formerly known as the Adventure
Experts.com, came to him after hardships in planning and buying his own
adventure trips. There are 10,000 adventure-travel tour operators in the
U.S. alone, but few have any brand recognition. By pulling together 70
preferred tour operators, iExplore will have an "inventory" of 300,000
trips available to enthusiasts. Mr. Deeb said the Web site also will
develop partnerships with content providers such as destination guides
and magazines, and with merchandisers of adventure gear and apparel.
The Web site will offer a research library featuring articles, maps,
weather, history, travel warnings and the like, and will provide a forum
for adventure travelers to talk to each other through bulletin boards
and e-mailings. Mr. Deeb said the site won't depend on advertising, but
may allow the preferred partners to sponsor articles, how-to guides and
recommended equipment lists. "We want to be seen as a nonbiased, trusted
information resource," he said.
Folder Name: adventure travel
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