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
Relevance Score on Scale of 100: 93

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