San Francisco Bay-area roastery and retail company Philz Coffee has entered into an investment deal with with the global firm Summit Partners. The exact terms of the investment were not announced, but Philz founder Phil Jaber and his 26-year-old son, CEO Jacob, will control the majority of the company.
Sources contacted by the technology blog Techcrunch said the investment may be somewhere in the $15 million to $25 million range, which would be comparable in scope to the $20 million deal James Freeman and the Bay Area’s Blue Bottle Coffee made with the investment firm True Ventures last October.
“We needed to partner with someone who not only could provide capital, but also could share our values and passion,” Jacob Jaber said of the deal with Summit. “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.”
In connection with the investment, Summit Partners Managing Director Greg Goldfarb is joining the Philz Coffee board of directors.
Founded by Phil in 2003, Philz now has 13 retail coffee shops throughout the Bay Area, with at least one more being developed. The company recently announced plans to build a coffee bar in San Francisco’s Tenderloin district.