Norwest Venture Partners closes $650-m fund

NEW DELHI: Venture capital firm, Norwest Venture Partners (NVP), today announced the formation of its most recent fund, Norwest Venture Partners X, LP. The $650 million fund is targeted at early, mid and late stage investments with a concentration on emerging growth opportunities in the global information technology sector. The addition of this new fund, the largest fund the firm has raised to date, brings NVP's total capital and commitments to more than $2.5 billion. NVP X follows the $400 million NVP IX Fund, which closed in late 2001.

The firm has funded over 400 companies since inception and has demonstrated a track record producing premier investment returns during differing capital

market environments. Over the past three years alone, NVP's portfolio companies have generated more than $1.7 billion in exit values.

“This latest fund will enable NVP to enter a new phase of growth. The size of NVP X is a testament to our belief in the potential of emerging markets in the U.S. and India,” said Promod Haque, managing partner at NVP. “The convergence of such trends as globalization, consumer driven technology, mobility and increased broadband penetration in emerging markets such as India, makes this a diverse and vibrant investing climate. NVP is excited to fuel the growth of several next-generation technology companies in the years ahead, and we will continue to partner with leading entrepreneurs to build great businesses.”

NVP's seasoned team of investment professionals is actively evaluating disruptive, “game changing” opportunities in the information technology sector. Over the last five years, Forbes has named three of NVP's managing and general partners (Promod Haque, George Still and Matthew Howard) to the annual Forbes Midas List as top dealmakers; Promod Haque topped the list in 2004, and he was recently recognized by the National Association of Software and Services Companies (NASSCOM) for his commitment to furthering global markets in India.

In conjunction with the closing of the new fund, NVP has also promoted Robert Abbott, Jeffrey Crowe, Vab Goel, Jim Lussier and Venkat Mohan to the position of general partner. NVP plans to expand the firm both in the US and India with the closing of NVP X.

NVP has invested in more than 20 “hybrid” or “cross border” companies (companies that are headquartered in the U.S, but have a significant presence in India). The firm has also made two direct investments in India during the last five months, and will be announcing additional investments in the first half of 2006. Most recently, NVP invested in Yatra Online, the first online and centralized travel services company

for the India market, and Persistent Systems, a leading provider of outsourced software product development.

NVP X will focus on early, mid and late stage direct and “cross-border” investments in the U.S., India and Israel. The fund will continue to concentrate on the broad investment opportunities in the consumer, mobile and media sectors in India.