US-based Norwest Venture Partners (NVP), a venture capital (VC) investment company, has raised a $1.2-billion fund targeted at early-to late-stage ventures and growth equity investments. This will allow it to invest more in growth markets such as India and China. This is one of the largest funds raised by a venture capitalist in recent times.
With the addition of the new fund, NVP's total capital and commitments have risen to over $3.7 billion. NVP XI, the latest fund raised by the VC, follows the $650-million NVP X Fund, which closed in 2006.
“We believe now is a great time to invest, and we are seeing significant opportunities amid a challenging economic environment – particularly in growth equity and in emerging markets such as India and China,” added Promod Haque, Managing Partner, NVP.
NVP has been in India since 2005, and has invested in five early-stage and three later-stage firms. The company forayed into late-stage investment early this year, and has opted for the secondary market route for investments. In the first half of 2009, NVP invested in three firms through secondary markets. NVP has invested close to $100 million over the last six months, with over $50 million invested in National Stock Exchange, along with mobile value-added services firm OnMobile and Shriram City Union Finance.
Some of its investment in early-stage include Appnomic Systems, an infrastructure management services firm. It has also invested in online travel portal yatra.com, Sulekha.com and KPO firm Adventity.
NVP has also increased its team size globally as well as in India. NVP India hired five investment professionals to focus on venture and growth equity investments and opened offices in Mumbai and Bangalore. In Israel, NVP brought two investment professionals and opened an office in Herzelia. The firm added three investment professionals to its US venture team and began bolstering its domestic growth equity practice.
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“The closing of NVP XI will enable us to further expand our growth by stage, region and sector. NVP is a global, multi-stage firm dedicated to both domestic and international investments, and we believe that raising one global fund is a distinct advantage for our portfolio companies,” said Haque.
NVP has been in existence for more than 48 years. The firm has funded over 450 companies since inception.