Norwest Venture Partners creates $1.2B fund after previous fund saw at least 11 successful exits
The Palo Alto investment fund will continue to focus on companies in California, India and Israel when it seeks out new investments
Global venture and growth equity investment firm Norwest Venture Partners just created a new $1.2 billion fund for early to late stage ventures and will continue to focus on companies in California, India and Israel.
The Palo Alto, Calif., firm on May 13 announced the formation of the new fund, NVP XII LP, which brings NVP’s total capital and commitments to about $5 billion.
“A key strategy for success at NVP is investment diversification,” Promod Haque, senior managing partner at NVP, said in a statement. “We invest across multiple sectors, stages and geographies, all with a team approach that enables our portfolio companies to tap into the breadth and depth of our expertise. The closing of NVP XII will enable us to expand our focus in the enterprise IT, consumer Internet, healthcare, consumer products and services sectors and grow our presence in thriving entrepreneurial hubs. We look forward to working closely with passionate and talented entrepreneurs to build the next wave of successful companies.”
On the heels of success
The announcement came after one of NVP’s most successful years, as more than 11 of NVP’s portfolio companies experienced liquidity events, such as IPOs, mergers or acquisitions, in 2013. Some of its successes in 2013 include FireEye, which raised $300 million in its IPO, RetailMeNot, which raised $191 million in its IPO, and Virtela, which was acquired by NTT Communications for $525 million.
NVP said its momentum has continued into 2014, and already portfolio companies The Echo Nest was acquired by Spotify; Sabre Corp. IPOed; and wearable device company Basis was acquired by Intel; among other successful deals.
Its previous investment fund, NVP XI LP, began in 2010 and made 40 investments. In total, NVP has invested in about 550 companies since inception and now has 120 active companies in its venture and growth equity profile, including Adative Insights, Apigee, BlueJeans Network, CareCloud, Clarus Marketing Group, and Gilt Groupe. NVP said it also intends to grow its investment staff and expand its portfolio services to support its portfolio companies.
A valued added partner
“Because we invest out of one global fund, NVP partners are committed to each investment in the portfolio, regardless of the location or stage, and they all have a vested interest in making every NVP company successful,” Jeff Crowe, managing partner of NVP, said in the statement. “Furthermore, our ongoing commitment to serving as a value added business partner to our entrepreneurs has always been an important part of NVP’s culture. Continuing to invest in our portfolio services team is a significant part of our strategy, and we’ll continue to grow our staff in marketing, recruiting, HR, finance and other key areas to help our portfolio companies grow and thrive.”
NVP invests in technology, business services, financial services, consumer products and healthcare companies. It works with companies of all sizes, from seed stage companies to late stage venture and growth equity. While headquartered in the U.S., it also has offices in Mumbai and Bengaluru, India and Herzliya, Israel.
“We are experiencing another significant technology shift in the industry and it’s an exciting time to be an investor,” Matthew Howard, managing partner of NVP, said. “The growing significance of such technologies as cloud, mobility, marketplaces and healthcare IT continue to create new venture and growth equity opportunities in an extremely promising investment climate. We are more excited than ever to continue partnering with leading entrepreneurs to build great businesses, and it’s our philosophy to add value and fuel the growth of these companies in every way possible.”