Blank Street raises $75mn to build a daily luxury brand

In short

Blank Street has raised $75mn from investors including private equity firm General Atlantic, valuing the six-year-old coffee chain at about $650mn as it opens stores in Beverly Hills, West Hollywood and Malibu. For a business built on viral matcha, the tie-up looks like a matcha made in heaven, although the price tag lands short of the $1bn some investors had wanted.

What's going on

• Blank Street, a six-year-old chain of more than 100 coffee shops mostly in London and New York, has raised $75mn from investors including private equity firm General Atlantic.
• The round values the company at about $650mn including the new money, a figure known as the post-money valuation, up from $500mn last year.
• The company wants to be a "daily luxury brand", selling matcha and ice cream alongside coffee, and takes most of its sales in the afternoon.
• Some investors had hoped the round would push the valuation towards $1bn, which co-founder Issam Freiha said was mistaken.
• General Atlantic, which manages about $130bn and owns Joe & The Juice, called out-of-home coffee and matcha a large, growing category.

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