Northwest Venture Partners, a 65-year-old firm backed by Wells Fargo, has raised its 17th fund for $3 billion.
This is a remarkable number, considering that NVP last raised a similar amount in December 2021. That was the peak of the venture boom, and at the time, the firm said it increased its capital pool by 50% (NVP’s 2019 fund closed at $2 billion) because it needed to remain competitive in the dealmaking environment, Where round sizes and valuations have soared to unprecedented levels.
But things have clearly changed since then. Investors are supporting fewer companies and valuations have and may decline. and fall,
Jeff Crowe, a senior managing partner, acknowledged that the investment rate in venture capital and some sectors is slower than several years ago, but he said there is growth in certain strategies, sectors and geographies, such as growth equity, healthcare and India. Dealmaking is still slow. As strong as it was before the recession.
“We’ve maintained a very steady pace and made several good exits,” Crowe told TechCrunch. “We felt it was best to keep going at the same pace.”
Since closing its last fund, the firm has helped 36 companies achieve liquidity. Not all exits had good results for the firm (NVP’s portfolio company) VanMoof files for bankruptcy protection), but according to Crowe, the returns from some exits far outweighed the losses. He pointed to the sale of the firm spiff for salesforce, buying of Aveta by EQT For a reported $3 billion and IPO of Indian-based Five Star Business Finance.
Crowe declined to comment on returns, but said: “This is Fund 17. We’ve been doing this for a long time, and in the venture world, if you deliver really good returns you have a chance to stay in business. Get.”
NVP attributes its success to operating a large global multi-strategy fund. The company invests in North America, India and Israel. It has an early stage and growth equity business, and recently added a biotech team to complement its existing health care practice.
The diversified approach allows the firm to adjust its strategy as the market changes. For example, NVP had planned to invest in crypto companies when it raised its last fund, but the sector fell out of favor soon thereafter and the company did not make many deals in the sector.
“Our diversified strategy works well during the ups and downs of the investment cycle,” Crowe said. “It gives us flexibility. This is its beauty. “We react quickly to changes.”
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