--- title: "Hospitality Technology Private Equity Investor | Capstreet" description: "Capstreet invests in hospitality and foodservice technology as consumers order, manage, track and pay electronically. See what fits and the HungerRush link." url: https://capstreet.multisites.ai/industries/hospitality publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # Hospitality and foodservice technology private equity Capstreet believes hospitality and foodservice are being transformed by technology as consumers order, manage, track and pay for services electronically. The firm also sees a highly fragmented sector with rapid innovation. It looks for owners with $3 to $15 million of EBITDA who want a majority capital partner. IndustryUpdated November 10, 20263 min read ![Portfolio company leaders at Capstreet’s 2023 CEO and CFO summit](https://capstreet.multisites.ai/_astro/ceo-summit-awards.RPn2Lp5__1amMTd.webp) ## Electronic ordering and payment Consumers use electronic channels to order, manage, track and pay. ## Fragmented sector Capstreet sees fragmentation and rapid innovation as the right setup. ## HungerRush A point of sale software provider listed as current, Fund IV. ## Why does Capstreet invest in hospitality? Capstreet sees technology changing how people order, manage, track and pay for hospitality and foodservice. It also sees a fragmented sector with fast innovation, which it thinks suits its Capvalue Framework®. Capstreet states its view this way on its [What We Do](https://capstreet.multisites.ai/what-we-do) page: > We believe the provision of hospitality and foodservice is yet another industry that is being rapidly transformed by technology as consumers increasingly leverage electronic mediums either to order, manage, track, or pay for their services. We also believe the sector is highly fragmented and experiencing rapid innovation, which provides the ideal scenario for businesses to benefit from our Capvalue Framework® to rapidly accelerate growth. Notice the two parts of the thesis. First, customer behavior is moving online. Second, the sector has many small players. Capstreet connects both to its own method for building platforms. The firm does not list sub-segments for hospitality. That is helpful: it keeps the door open for point of sale, ordering, loyalty, payments and related tools, as long as the company serves hospitality or foodservice. ## What kinds of hospitality businesses fit Capstreet? A fit is a technology business in hospitality or foodservice that helps merchants or consumers order, manage, track or pay. A fragmented niche with fast innovation is a plus. Area What Capstreet describes Order Online and mobile ordering tools Manage Software that runs daily operations Track Reporting and visibility into orders and performance Pay Payments and merchant services Market A fragmented sector with rapid innovation Capstreet’s own list is short, so use the portfolio below as your guide. Then test your company against the firm’s [criteria](https://capstreet.multisites.ai/deal-criteria), including EBITDA and ownership. ## How do Capstreet’s criteria apply to hospitality companies? Capstreet publishes five criteria, and they apply to hospitality owners the same way they apply to every other industry. Each one is listed below. - Entrepreneur-owned businesses services companies - $3 to $15 million of EBITDA - Primarily majority investments - Entrepreneurs reinvest alongside Capstreet - Ability to apply the Capvalue Framework® The firm also says it looks for “a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche.” Fragmented markets can reward a platform that grows through acquisitions. Capstreet runs a buy and build strategy; see [buy and build](https://capstreet.multisites.ai/glossary/buy-and-build) for the definition. Whether your niche supports that path is a question to explore in a first call. A [fragmented industry](https://capstreet.multisites.ai/glossary/fragmented-industry) has many small players and no clear leader, which can leave room for a consolidator. Capstreet’s approach often uses [buy and build](https://capstreet.multisites.ai/glossary/buy-and-build): buy a platform, then add companies to it. Its $3 to $15 million EBITDA range sits in what many call the [lower middle market](https://capstreet.multisites.ai/glossary/lower-middle-market). ## Which hospitality companies has Capstreet backed? Capstreet lists one hospitality company in its portfolio. It is a current investment. Status is shown as Capstreet publishes it on its [portfolio](https://capstreet.multisites.ai/our-companies) pages. - **[HungerRush](https://capstreet.multisites.ai/portfolio/hungerrush)**: Current, Fund IV. A provider of integrated point of sale software for restaurant and other hospitality merchants in the United States. Its solutions include point of sale, online ordering, loyalty, reporting, merchant payment services and financing. Formed in 2018 and headquartered in Houston, TX. ## What does Capstreet do after it invests? Capstreet applies its [Capvalue Framework®](https://capstreet.multisites.ai/building-greatness) in three steps: Research, Build Scalable Platform, and Drive Business Transformation. Across its history, the firm reports 50+ Platform Acquisitions and 200+ Add-on Acquisitions. 1. **Research.** Perform deep research to identify markets and build relationships with key entrepreneurs. 2. **Build Scalable Platform.** Invest in top talent and technologies, and provide functional expertise for scale. 3. **Drive Business Transformation.** Develop a long-term strategic roadmap and execute a buy and build strategy. The firm says its Capvalue Framework® helps businesses in this sector accelerate growth. Read how the [framework](https://capstreet.multisites.ai/building-greatness) works. There can be no guarantee that Capstreet will be successful in applying its Capvalue Framework®. ## Next step If your company serves hospitality, read the full [deal criteria](https://capstreet.multisites.ai/deal-criteria), then start a confidential conversation through the [contact page](https://capstreet.multisites.ai/contact). You can also call 713-332-2700 or email [connect@capstreet.com](mailto:connect@capstreet.com). See all [industries](https://capstreet.multisites.ai/industries) Capstreet lists. ## Frequently asked questions ### What hospitality companies does Capstreet invest in? Capstreet invests in technology businesses in hospitality and foodservice. It points to electronic ordering, managing, tracking and paying as the trend. The firm also likes the sector's fragmentation and rapid innovation, and wants owners with $3 to $15 million of EBITDA. ### Does Capstreet invest in restaurants? Capstreet's published thesis is about technology for hospitality and foodservice, and its portfolio company sells point of sale software to restaurants. If you own restaurants rather than technology, ask the firm directly before assuming a fit. ### What is HungerRush? HungerRush is a Capstreet portfolio company, listed as current in Fund IV. It provides integrated point of sale software for restaurant and other hospitality merchants, with online ordering, loyalty, reporting, payment services and financing. It was formed in 2018 and is based in Houston. ### Why does Capstreet like fragmented sectors? Capstreet says a highly fragmented sector with rapid innovation is the ideal scenario for its Capvalue Framework®, which aims to build scalable platforms and drive business transformation. Fragmentation can leave room for a platform to grow. ## Terms on this page - [Fragmented Industry](https://capstreet.multisites.ai/glossary/fragmented-industry) - [Lower Middle Market](https://capstreet.multisites.ai/glossary/lower-middle-market) - [Buy and Build](https://capstreet.multisites.ai/glossary/buy-and-build) - [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) ## Hospitality companies we have backed - [**HungerRush**Current · Hospitality](https://capstreet.multisites.ai/portfolio/hungerrush) ## Keep reading - [Legal services and legal technology private equityCapstreet believes the legal services and technology market remains fragmented and under-adopted. It says it has a strong track record of helping businesses scale where those conditions exist, plus specific experience with the nuances of the legal industry. It looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/legal) - [Automotive technology private equity for dealer-focused companiesCapstreet invests in automotive technology businesses that help dealerships. The firm targets solutions for sales, marketing, finance and insurance, and service lane operations. It describes several recent investments in the sector and looks for owners with $3 to $15 million of EBITDA who want a majority capital partner.](https://capstreet.multisites.ai/industries/automotive) - [Construction technology private equity for software ownersCapstreet believes technology can drive large changes in construction efficiency and project delivery. It targets software businesses that support project and financial management for general contractors and sub-contractors. The firm sees the industry as early on its technology adoption curve and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/construction) - [Government technology (GovTech) private equityCapstreet believes government technology is behind on adoption but could gain large efficiency from specialized vertical software. It says GovTech shares the attractive traits of other stable, regulated industries where the firm knows how to help businesses scale. It looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/government) - [Insurtech private equity for carrier-focused companiesCapstreet invests in insurtech businesses that improve how insurance carriers operate. It looks for technology-enabled services and software in digital sales enablement, underwriting, service and administration, and claims management. Owners should have $3 to $15 million of EBITDA and want a majority capital partner.](https://capstreet.multisites.ai/industries/insurance) - [Transportation and logistics technology private equityCapstreet invests in supply chain technology companies in transportation and logistics. It targets track and trace, transportation and warehouse management systems, e-commerce and omnichannel tools, procurement software and supply chain analytics. The firm sees fragmented technology as an opening, and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/transportation-logistics) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)