Norwest Venture Partners Secures $3 Billion for 17th Fund, Maintaining Fund Size Amid Market Downturn

Norwest Venture Partners, a 65-year-old firm backed solely by Wells Fargo, has made headlines by raising its 17th fund at an impressive $3 billion. This significant milestone comes at a time when the investment landscape is experiencing a shift, with investors backing fewer companies and valuations on the decline.

Jeff Crowe, a senior managing partner at NVP, acknowledged the slower investment rate in certain sectors but highlighted the firm’s continued success in dealmaking, particularly in growth equity, healthcare, and India. Despite the changing market conditions, NVP has maintained a steady pace and delivered numerous successful exits for its portfolio companies.

Since closing its previous fund, NVP has facilitated 36 companies in realizing liquidity, with notable exits including the sale of Spiff to Salesforce and the buyout of Avetta by EQT for a reported $3 billion. Crowe emphasized the importance of delivering strong returns in the venture world, stating, “You get to stay in business if you deliver really good returns.”

NVP’s diversified approach, operating out of one large global multi-strategy fund, has been a key factor in its success. The firm invests in North America, India, and Israel, with a focus on early-stage and growth equity investments. Additionally, NVP recently added a biotech team to its healthcare practice, further expanding its investment capabilities.

Crowe highlighted the flexibility of NVP’s strategy, allowing the firm to adapt quickly to market changes. Despite initial plans to invest in crypto companies, NVP shifted its focus when the sector fell out of favor, demonstrating the firm’s ability to react swiftly to evolving market conditions.