SAN FRANCISCO Feb 24 LoungeBuddy, a business
that allows travelers short-term access to airport lounges, said
on Tuesday it had raised $3 million in venture capital, bringing
the company's valuation to $18 million.
The San Francisco-based company, which has raised a total of
$4 million, aims to profit from increasing delays in air travel.
In 2014, more than 21 percent of U.S. flights arrived late,
according to the Department of Transportation. That was the
highest since 2008.
Founders Fund, the venture firm founded by PayPal co-founder
Peter Thiel, led the latest round in raising cash but will not
take a board seat, LoungeBuddy said.
LoungeBuddy was founded in 2013 by the company's chief
executive Tyler Dikman, vice president of marketing Brent
Griffith, and chief technology officer Zac Altman.
Using its app, travelers can identify and book an airport
lounge for one-time and last-minute use, typically for a fee
smaller than the one-time fees airlines charge. Some business
travelers access LoungeBuddy through SAP owned Concur,
which arranges travel for companies.
(Reporting by Sarah McBride; Editing by Diane Craft)