Summit Partners has backed San Francisco-based specialty coffee retailer Philz Coffee. The firm made a “minority growth equity investment” in Philz Coffee. Specific terms of the deal were not released.
Philz Coffee, a specialty coffee retailer with cafés in the San Francisco Bay Area, today announced that it has entered into a minority growth equity investment partnership with Summit Partners. Philz Coffee delivers its own exclusive blends of coffee along with personal customer service – brewed one perfect cup at a time.
The story behind Philz Coffee starts with Phil Jaber, who immigrated to the United States as a boy. Once Phil had scratched together enough capital, he opened a corner grocery store in San Francisco’s Mission District. Phil’s passion for coffee led him to spend hours every day developing special blends bean by bean, roast by roast. For 25 years, Phil perfected the blends that customers can now only find at Philz Coffee. He began offering these exclusive blends, brewed one cup at a time, in his Mission District grocery store. As word of mouth grew, he took the risk of shutting down his successful business and replaced it with the first Philz Coffee store in 2003. Since then, Philz Coffee has expanded to 13 locations across the Bay Area, as customers continue to share their enthusiasm for Philz with friends, family and colleagues.
Jacob Jaber, the 26-year-old CEO of Philz Coffee, shares his father’s passion for delivering a special coffee experience. Since Jacob turned 18, he has been helping his father run the company. According to Jacob, the investment will be used to help Philz bring its unique coffee approach to more customers in the Bay Area and other regions of the country.
Following the investment, Jacob and Phil Jaber will continue to hold majority control of the company, and will lead Philz Coffee as it continues its mission to better the day for more people.
“My dad started this business because of his strong passion for coffee, people and what coffee did – namely, to bring people and communities together,” notes Jacob. “Our goal will always be to nourish this and continue delivering a genuine customer experience through a personalized cup of love and great service. I don’t think of Philz as being in the coffee business. I strongly believe we are in the people business. We want each of our customers to leave our stores saying, ‘Damn, that was awesome!’ We are also passionate and committed to creating a great work environment for our team members, whom we believe are the most important asset in our business. Without them, we have no customers.
“From early on, I knew that we had a huge opportunity in front of us – changing the way people drink coffee. To achieve this ambitious vision, we needed to partner with someone who not only could provide capital, but also could share our values and passion. Soon after meeting Greg and the folks at Summit Partners, I knew that they were different. Summit understood Philz intellectually and viscerally, which is what attracted me to them. Not to mention, they are all huge Philz fans. We are ecstatic to partner with such a respected firm. To me, this is not just an investment – it’s a partnership built on a foundation of respect and passion for Philz’ vision, mission and values,” he added.
“Phil and Jacob Jaber are a story of passion, drive and entrepreneurship that can only happen in America,” said Greg Goldfarb, a Managing Director with Summit Partners. “Bean by bean and step by step for nearly three decades, they have developed a superior product and experience that customers know is uniquely Philz. Impressively, they have accomplished this with no outside capital – just through tremendous drive and by staying true to their customers. There is an exceptional set of values at the core of Philz, and Summit is enthusiastic about helping them sustain this passion as it grows. Philz is unlike anything a consumer has ever experienced with coffee.” In connection with the investment, Summit’s Goldfarb is joining the Philz Coffee Board.
About Philz Coffee
Philz Coffee focuses on making the best drip coffee. Each cup is handcrafted and made one cup at a time at its retail stores, and is served by friendly Baristas dedicated to customizing each cup of love. Philz doesn’t do espresso, lattes and cappuccinos… they believe in being great at a few things – handcrafted drip coffee and personalized customer service.
About Summit Partners
Summit Partners (www.summitpartners.com) is a growth equity firm that invests in rapidly growing companies. Founded in 1984, Summit has raised nearly $15 billion in capital and provides equity and credit for growth, recapitalizations and management buyouts. Summit has invested in more than 365 companies globally in technology, healthcare and other growth industries. These companies have completed 130 public offerings, and more than 135 have been acquired through strategic mergers and sales. Summit Partners has offices in Boston, Menlo Park, London and Mumbai. Notable companies financed by Summit Partners include Tiny Prints, vente-privee.com, Wildfire Interactive, The Mutual Fund Store, RightNow, McAfee, Hyperion and many other industry leaders.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners Limited, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners Limited is a limited company registered in England and Wales with company number 4141197, and its registered office is at 20–22 Bedford Row, London, WC1R 4JS, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.