# Digital Arbitrage

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/digital-arbitrage

- Industry: Software
- Headquarters: San Diego, US
- Website: www.cloudbeds.com
- Total disclosed funding: $246M
- Latest round: Series D (Nov 3, 2021)
- Investors on record: 14

## About

Digital Arbitrage, Inc. empowers the hospitality industry with a robust management platform, enhancing operational efficiency for hotels, hostels, and vacation rentals through innovative technology solutions.Founded in 2012, Digital Arbitrage, Inc., based in San Diego, US, specializes in hospitality management software. Co-founded by Adam H, Marco Bonaso, Massimo Trovo, and Richard Castle, the company has successfully secured a total of USD 150 mn in funding through multiple rounds, with the latest being a Series D round on November 3, 2021, led by SB Investment Advisers and supported by various investors. This funding round completes the total amount raised by the company, which currently values it at USD 659.96 mn.Cloudbeds provides a comprehensive hospitality management platform that simplifies operations for hotels, hostels, and vacation rentals. Key offerings include a property management system (PMS), channel manager, booking engine, and revenue management tools. These services help small to medium-sized hospitality businesses optimize guest experiences and manage reservations effectively while allowing real-time availability updates across multiple channels. Their clientele spans North America, Europe, and Asia, serving various types of hospitality providers, including boutique hotels and vacation rentals.Cloudbeds operates on a subscription-based model, offering a tiered pricing structure tailored to the needs of different hospitality businesses. Clients subscribe to access a complete suite of tools, including the PMS, channel manager, and booking engine, with additional optional features available for added fees. Subscription fees drive the majority of revenue, which accommodates a range of clients from independent operators to larger hotel chains, ensuring flexible and scalable service options.Following its Series D funding round in November 2021, Digital Arbitrage, Inc. plans to leverage the USD 150 mn raised to grow its workforce, enhance customer acquisition strategies, and expand its product offerings. The company aims to deliver advanced technology solutions to the hospitality sector while exploring further global market expansion. Specific target regions for growth include emerging markets in Asia and Europe, with anticipated developments slated for the next two years.

## Funding rounds

- Series D, Nov 3, 2021, $150M — Viking Global Investors, Echo Street Capital Management, PeakSpan Capital, Walleye Capital, SB Investment Advisers, Counterpart Ventures
- Series C, Mar 9, 2020, $82M — Viking Global Investors, Recruit Co., Ltd., Cultivation Capital, PeakSpan Capital, Counterpart Ventures
- Series B, Jun 22, 2017, $9M — Nashville Capital Network, Cultivation Capital, PeakSpan Capital, ClearVision Equity Partners, TTCER Partners
- Series A, Apr 13, 2016, $3.1M — EON Capital, Moore Venture Partners, Cultivation Capital, Seed San Diego
- Series A, Dec 13, 2013, $2M — Nashville Capital Network

## Investors

- Nashville Capital Network (https://capitalatlas.ai/funds/nashville-capital-network) — Series A, Series B
- EON Capital — Series A
- Moore Venture Partners (https://capitalatlas.ai/funds/moore-venture-partners) — Series A
- Cultivation Capital (https://capitalatlas.ai/funds/cultivation-capital) — Series A, Series B, Series C
- Seed San Diego (https://capitalatlas.ai/funds/seed-san-diego) — Series A
- PeakSpan Capital (https://capitalatlas.ai/funds/peakspan-capital) — Series B, Series C, Series D
- ClearVision Equity Partners (https://capitalatlas.ai/funds/clearvision-equity-partners) — Series B
- TTCER Partners (https://capitalatlas.ai/funds/ttcer-partners) — Series B
- Viking Global Investors (https://capitalatlas.ai/funds/viking-global-investors) — Series C, Series D
- Recruit Co., Ltd. — Series C
- Counterpart Ventures (https://capitalatlas.ai/funds/counterpart-ventures) — Series C, Series D
- Echo Street Capital Management — Series D
- Walleye Capital — Series D
- SB Investment Advisers (https://capitalatlas.ai/funds/sb-investment-advisers) — Series D