027: What Institutional Capital Really Thinks About STR Right Now | Chris Hemmeter, Thayer Ventures
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What does institutional capital think about the short‑term rental (STR) market right now?
venture capital went into AI startups. This is unheard of. The first thing I'll say is this is why I love being a private asset investor as opposed to a public asset investor, because the volatility in the markets today, not for the faint of heart. And then I I think eventually we will see booking travel, the way that that's changing with AI is nothing short of utter disruption at the core of the industry. Venture capitalists are looking for $500 million exits, billion dollar exits. So just because we say, oh, that's not a venture investable business, doesn't mean it's a bad business. I still think that this is a great category. It's just... It puts a lot of pressure on entrepreneurs to come up with truly sustainable and defendable ideas.
The good news is that the hobbyist goes away first. They get out of the way, there's less noise. The opportunities have never been greater. It's almost going back to the human roots of just being a great leader and a strategic thinker. Back to business 101. So it comes back to humans.
You are listening to STR Global Unlocked, brought to you by AGL Atelier, the show where I speak with the leaders shaping short-term rentals worldwide. I am Simon Leeman, and after two decades buying, selling, advising, and investing, I've built a network that spans continents and categories. This podcast brings that network to you. Real conversations, global insight, no PR fluff. Let's get started. Nearly $300 billion in SaaS market cap evaporated recently. AI is rewriting software economics. Exit windows are selective. Capital is low. cautious and travel tech is no longer a guaranteed growth narrative. So where does that leave the short-term rental industry and how is institutional capital actually thinking about the space today?
Today, I'm joined by Chris Hemeter, Managing Director at Thayer Ventures. Thayer has been one of the most active institutional investors across travel and hospitality technology. From early stage to growth investments, Chris and his team have seen the rise, expansion, and reset of travel tech, including short-term rentals. Today's conversation is not about hype. It's about capital discipline, defensibility, and what the next five years might really look like. Chris, it's great to have you here, and I'm really
excited. Great to be back, Simon. I'm looking forward to our conversation, my friend.
I don't know how many drinks you and I had together at the Focusrite bar across the last 20 years, but you and I have always been together and I had the pleasure to be part of your speaker list in terms of investment conferences at Thayer. And also I had the pleasure to be part of a board of one of your investments as well for several years. And
you and
I, we have been always in great connection over time. And it's a great pleasure to have you here tonight. And I have a rapid fire together. So I'll give you a statement and you give me the shortest answer that you possibly can. Are you ready for it? Ready. STR is overbuilt or underbuilt? Overbuilt. The most overrated metric in travel tech.
Logos.
One thing founders should stop doing immediately.
Changing the name of their company to .ai for no apparent reason.
AI is opportunity or threat.
Opportunity.
The next five years, consolidation or expansion?
Thank
you so much, Chris. So let's start at the macro level. Public SaaS valuations have compressed. I mean, we've seen a wild storm. AI is introducing uncertainty into traditional vertical software models. And is this cyclical correction or a structural repricing? How do you see that as an investor perspective?
The first thing I'll say is this is why I love being a private asset investor as opposed to a public asset investor, because the volatility in the markets today, not for the faint of heart. Look, I understand what the market is saying, but I think it is an incredibly shallow interpretation of the issues at play. I think it's a massive overcorrection. I think it is largely led by the amount of retail concentration in markets today. What I mean by that is individual investors that are moving money in and out of positions.
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Chapters
4 chapters
1
What does institutional capital think about the short‑term rental (STR) market right now?
0:01–17:10
2
How did the rapid‑fire round reveal the current state of the STR industry?
17:10–19:27
3
Why are public SaaS valuations compressing and what does that signal for travel tech?
19:27–37:29
4
How did the pandemic and AI create a one‑two punch that reshaped travel technology?
37:29–46:26
Speakers
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