General Catalyst & Tiger Global Invest in Blank Street Coffee

The Genesis of Blank Street: A New Coffee Concept

Vinay Menda and Issam Freiha, friends with a shared passion for coffee, relocated from Dubai and Lebanon to pursue studies at NYU and Columbia, respectively. During their time in New York, they began a detailed examination of the local coffee market.

They observed a proliferation of coffee shops throughout the United States, yet identified shortcomings in the overall customer experience. Specifically, they found that many establishments prioritized either a leisurely atmosphere or convenience for at-home brewing, lacking a streamlined “grab and go” option, as Freiha explained.

Identifying a Market Gap and Leveraging Asian Models

After completing their education, Menda and Freiha established Reshape, a venture capital firm managing $100 million in assets. Their observations led them to recognize the success of mobile-first, high-growth food retail businesses in Asia.

Menda articulated to TechCrunch that these Asian businesses demonstrated efficiency in real estate utilization, enabling cost savings on rent and encouraging pre-ordering. They envisioned replicating this model within the U.S. market.

From Concept to Reality: Founding Blank Street

The pair, having collaborated for approximately seven years, officially launched New York-based Blank Street in May 2020. Their initial venture was a mobile coffee cart, debuting three months later in Williamsburg through a partnership with EV Foods at the Wythe Diner.

The core idea centered on minimizing real estate footprint to gain greater control over location, facilitate multiple points of presence within a single neighborhood, and free up capital for investments such as competitive product pricing.

Technology was integrated to enhance the customer ordering process, while simultaneously upholding standards of quality, speed, and convenience.

Securing Funding and Expanding Operations

Today, Blank Street announced the successful completion of a $25 million Series A funding round. This round was spearheaded by General Catalyst and Tiger Global, and included participation from strategic investors like Neil Blumenthal and Dave Gilboa (Warby Parker founders), Jeff Raider (Harry’s founder), and Joey Zwillinger (Allbirds founder).

This new investment supplements the $7 million in seed funding the company secured earlier in the year.

Youngme Moon, a professor at Harvard Business School, a member of the Blank Street board, and an advisor to General Catalyst, shared her insights via email. She initially noticed the company’s mobile coffee carts becoming increasingly visible throughout the city.

Moon recognized Blank Street as a rapidly emerging competitor in New York’s dynamic specialty coffee sector. She was particularly impressed by the founders’ innovative approach to the entire micro-retail experience for urban consumers.

“Blank Street distinguishes itself in a highly competitive market by delivering a superior product through a digitally integrated, mobile vendor platform,” Moon added.

Current Footprint and Future Growth

Currently, the company operates 14 locations spanning Brooklyn and Manhattan. These consist of both 700-square-foot brick-and-mortar stores and zero-emission mobile street carts.

Blank Street functions as a micro-retail marketplace, featuring products from partners such as Parlor Coffee, Gertie bagels, King Street Baking Co., and King David Tacos. Menda stated that each location achieved profitability within two months of opening.

“Density is key to the success of our model,” he emphasized. “Our goal is to establish 100 locations by 2022, creating a strong brand presence and widespread recognition.”

Strategic Allocation of Funds and New Initiatives

The newly acquired funding will be allocated to retail expansion, strengthening vendor partnerships, and advancing technology development. Freiha anticipates establishing three to five locations within each of 20 neighborhoods, each supported by a dedicated team and resources.

Further development will focus on the consumer app, enhancing ordering, pick-up options, and implementing a customer rewards program.

The company is also introducing “Powered By Blank Street,” a wholesale partnership program. This initiative allows local vendors to expand into new neighborhoods without the burdens of securing storefronts, managing labor, or handling daily operations.

King David Tacos is the first partner to utilize this model, offering its breakfast tacos alongside Blank Street’s coffee and tea selections.

“Our aim is to extend the same tools that empower our own experience to other brands, providing them with the infrastructure we’ve developed,” Menda explained. “This will enable consumers to discover new culinary offerings and provide vendors with a platform to test innovative products and gather real-time feedback.”