By continuing to browse our site, you are consenting to the use of cookies. Click here for more information on the cookies we use.


23.5 Degrees

About 23.5 Degrees
23.5 Degrees was the first ever Starbucks franchisee in the world. They launched their first store in 2012 in response to Starbucks’ strategic decision to build its UK business through franchising. At the time of investment there were 13 stores in the group, there are now 55 stores and over 650 employees, with another two stores being added each month.

What attracted us to invest in this private equity deal?

  • High quality management team with franchise track record and specific Starbucks experience

  • Clear growth opportunities through organic roll-out underpinned by a strong pipeline of sites

The Investment
In September 2015 we completed a £5.6 million private equity growth capital investment in 23.5 Degrees. We provided a follow-on investment of £3.6m in August 2018 to support ongoing growth.

Background to the deal

  • 23.5 Degrees was seeking to acquire a bundle of 16 stores from Starbucks
  • This acquisition would also see 23.5 Degrees acquire the rights to open sites across a number of new geographies under the Starbucks franchise model, creating a working capital requirement for the roll out of new stores

Mark Hepburn, CEO, 23.5 Degrees

About the CEO
After 15 years with Burger King and then working for a franchisee, Mark’s dream came true when he set up a company that became Starbucks’ first ever franchisee worldwide. From launching the first store in 2013, it now has 46 sites and counting.

What advice would you give to a business seeking equity funding?
Shop around. Find a partner you can make a connection with. They are your business partner for the next 5 years or so.

Why did you choose Connection Capital?
They’d really done their homework, so from the first meeting there was a very positive and constructive outlook on our business and its prospects. They’re also nice guys.

Investment Highlights
Date of Investment
September 2015
Branded Coffee Franchise
Investment type
CC Investment
Woolverstone House,
61-62 Berners Street,
London, W1T 3NJ, United Kingdom
020 3696 4010