In the Room with Elia Wallen, Founder and CEO of Engine

In this episode, we are joined by Elia Wallen, Founder and CEO of Engine (formerly Hotel Engine), the B2B travel booking platform that’s streamlining how businesses manage their travel needs. From its origins as an internal tool for Elia’s previous company, Travelers Haven, to becoming a $2.1 billion company, Engine has carved out a significant niche by focusing on serving SMBs with a frictionless approach to corporate travel management.

Key Themes in this episode include: Building a Moat within The SMB SEgment, Avoiding the Noise by Starting Outside Tech Hubs and Raising Capital When Focus Meets Friction — Not Just When You Can.

Let’s Open the Door.

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T1: Building a Moat Within the SMB Segment

Elia emphasizes the importance of serving the SMB market, which he believes has been largely overlooked by larger players in the corporate travel industry. By focusing on this segment, Engine has been able to create a product that meets the unique needs of smaller businesses, offering a low-friction booking experience without the burdensome contracts and minimum spend requirements often associated with larger platforms.

This approach not only differentiates Engine from its competitors but also builds a strong moat around its business. Elia notes that many startups begin in the SMB space due to its lower friction and easier access to customers. However, the challenge lies in maintaining that focus as the company grows. Engine’s commitment to staying true to its roots has allowed it to thrive, achieving a $2 billion valuation while primarily offering lodging solutions before expanding into flights and rental cars.

T2: Avoiding the Noise by Starting Outside Tech Hubs

Elia’s journey began in a retirement community in Florida, a stark contrast to the bustling tech hubs that often breed start ups. This unconventional starting point provided him with a unique perspective, allowing him to build a business without the distractions and pressures often found in more established tech environments like Silicon Valley.

By avoiding the noise of traditional tech hubs, Elia was able to focus on building a solid foundation for Engine. He highlights that being in a less competitive environment allowed him to establish core beliefs and business practices without the influence of external pressures. This strategic decision has proven beneficial, as it enabled Engine to grow organically and maintain a clear vision for its product and market.

T3: Raising Capital When Focus Meets Friction — Not Just When You Can.

Elia’s experience with fundraising underscores the importance of timing and focus. He recalls a critical moment when Engine was on the brink of missing payroll, and the closing of their Series A funding was delayed. This period of uncertainty tested his resolve, but it also highlighted the necessity of raising capital when it aligns with the company’s focus and growth trajectory, rather than simply when funds are available.

Elia’s first investor, Mickey Arabelovic from Telescope Partners, played a pivotal role in guiding him through this challenging time. Mickey’s support not only provided the necessary capital but also encouraged Elia to shift his focus to Engine full-time, ultimately leading to the company’s significant growth. This experience reinforces the idea that successful fundraising is not just about securing money; it’s about aligning capital with a clear vision and operational focus.

As Engine continues to innovate and expand its offerings, Elia’s insights serve as a valuable reminder for founders navigating the complexities of building a business in today’s competitive landscape. By focusing on the SMB segment, leveraging the advantages of starting outside traditional tech hubs, and raising capital strategically, entrepreneurs can create a sustainable path to success.

Special thanks to our Season 12 sponsors, Perkins Coie and Mercury, who we are thrilled to partner with for a third consecutive season.

Mercury is the fintech ambitious companies use for banking* and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That’s why over 200K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best.

​*Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC.

Perkins Coie is a leading full-service, international law firm known for providing high-value, strategic solutions for startups and investors. Lawyers in Perkins Coie’s Emerging Companies & Venture Capital practice support the most innovative entrepreneurs and investors in fast-moving and high-growth sectors across the country, addressing the myriad legal needs that arise when fundraising and scaling their businesses. The firm’s tailored legal services are informed by an understanding of each client’s discrete needs.