Folio, a fast-growing startup transforming financial operations in the hospitality industry, has announced a $14 million Series A funding round led by Spark Capital. The round also saw participation from notable investors such as M13, Crossbeam Venture Partners, and New York-based Fin Capital. Folio plans to use the new capital to accelerate product development, expand its engineering and sales teams, and grow its customer base within the hotel and resort sectors.
Founded in 2021, Folio addresses a long-standing pain point in the hospitality industry: the fragmented and outdated financial workflows that hotels rely on to manage revenue, costs, and performance metrics. Its cloud-based platform automates daily reconciliation, tracks revenue across multiple channels, and integrates seamlessly with existing property management systems and accounting software.
Solving a Major Operational Challenge
Folio’s platform helps hotel finance teams replace spreadsheets, manual entries, and legacy tools with a centralized solution. It automates financial workflows including daily profit-and-loss reports, payment reconciliations, and performance benchmarking. The system also offers real-time insights and notifications, allowing hotel operators to respond quickly to discrepancies or operational issues.
With the latest funding, Folio plans to deepen its product capabilities and roll out new features that support larger enterprise clients. CEO and co-founder Eric King emphasized that hotels of all sizes, from boutique properties to major chains, can benefit from Folio’s technology. He noted that over 500 properties already use the platform, and adoption has surged over the past year as hotel operators seek to boost efficiency amid rising labor costs.
Growing Interest from Investors and Operators
Hospitality remains one of the last industries to digitize core back-office operations, making it a ripe opportunity for startups like Folio. Spark Capital partner Natalie Sandman, who is joining the board, said the firm was drawn to Folio’s strong team and clear product-market fit. “Hotels have been underserved by tech,” she said. “Folio is finally giving operators the tools they need to make smarter, faster decisions.”
The startup’s rapid growth reflects a broader shift in hospitality tech investment, as operators look to optimize margins and improve financial visibility post-pandemic. With $14 million in fresh capital, Folio is well-positioned to lead the charge in hotel finance transformation.
