Norwest Venture Partners

Norwest Venture Partners
Private
Industry Venture capital
Founded 1961
Headquarters Palo Alto & San Francisco, Palo Alto, CA
Total assets $7.5 billion[1]
Number of employees
 90 (2016)
Website www.nvp.com

Norwest Venture Partners (Norwest) is a venture and growth equity (GE) investment firm with more than $7.5B in capital under management. The firm targets early to late-stage venture and growth equity investments across several sectors, including cloud computing and information technology, Internet, software as a service, business and financial services, consumer and healthcare. Headquartered in Palo Alto, California, Norwest has offices in San Francisco and subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. The firm has funded more than 600 companies since inception. As of early 2018, the firm has approximately 140 active companies across its venture and growth equity portfolio.[2]

History

Norwest Venture Partners traces its roots back to 1961 with the formation of the Northwest Venture Fund, a private equity and venture capital affiliate of Norwest Corporation, a midwestern bank based in Minneapolis that merged with Wells Fargo in 1998. In the late 1950s and early 1960s, Minneapolis was an early site for both venture capital and high-technology business.[3]

The VC industry was active with the formation of the first Small Business Investment Company (SBIC) and First Midwest Capital Corporation. In 1957, Control Data Corporation, a pioneering supercomputer company, was founded by William Norris. Two years later Norris was instrumental in the formation of the Northwest Growth Fund and the firm was active in the Minneapolis high-tech industry.[4]

The Northwest Growth Fund grew under the leadership of CEO Robert Zicarelli including the opening of an office in Silicon Valley. Zicarelli retired in 1988 and was succeeded by Daniel Haggerty who retired in the 1990s.[5] George J, Still, Jr. (now partner emeritus)[6] and Promod Haque took over as managing partners in 1994.[7]

In January 2016, the firm announced Norwest Venture Partners XIII, a $1.2B fund. NVP XIII marked Norwest's third consecutive $1.2B fund raised in fewer than six years.[8]

In 2017, Norwest had 17 liquidity events, including nine company acquisitions and two initial public offerings. [9]

In February 2018, the firm announced Norwest Venture Partners XIV, a $1.5B fund. It is the firm's largest fund to date.[10]

Notable investments for Norwest includes Dairy Queen, Spotify, Casper and Kendra Scott.

Executives

Norwest is led by senior managing partner Promod Haque[11] and managing partners Jeff Crowe[12] and Jon Kossow[13]. George J. Still, Jr., partner emeritus, was named to the Forbes Midas List in 2011.[14]


  • Jeff Crowe - joined Norwest in 2004 and became a managing partner in 2013. He worked in the tech world for 20 years as cofounder and CEO of software company Edify. In recent years, Crowe has invested in Jet.com (acquired by Walmart), as well as HoneyBook and Modsy. He currently serves on the boards of Common, Extole, Glint, Grove Collaborative, HoneyBook, Madison Reed, Modsy, Opendoor, Owler, and Talkspace. Crowe is responsible for Norwest's investments in Spotify, Uber and Minted.[15] He was named to the Forbes Midas List in 2014, 2015, 2016, 2017 and 2018.[16]
  • Jon Kossow - joined Norwest in 2009 and became a managing partner in 2018. Kossow focuses on growth equity opportunities in information services, software, internet, and business services. He was previously a director at Goldman Sachs and a principal at TA Associates in Menlo Park, California. His investments include Infutor, Cority, 1010data (acquired by Advance), Clarus Commerce (acquired by Trivergance), The Rainmaker Group (lease rent options assets acquired by RealPage) and The Retail Equation (acquired by Appriss). Kossow currently serves on the boards of Avetta, Cority, Infutor, Manta Media, The Rainmaker Group, Topo Athletic, and Wine Access, with additional active investments in ACL, Appriss and TurnItIn.[17]

Investments

By stage

Venture investments: Norwest's investments include such companies as Casper, CognitiveScale, Glint, IFTTT, Madison Reed and Modsy. Other Norwest-funded ventures include 6 River Systems, 8th Wall, Act-On, Agari, Aporeto, Bitglass, BlueJeans_Network, Borqs, Bracket Computing, Button, CareCloud, ClearDATA, Common, Copper (formerly ProsperWorks), Cority, Dtex Systems, Engagio, Exabeam, Health Catalyst, HoneyBook, JoyRun, Leanplum, Lending Club, Lumosity, Minted, Mist, MobileIron, ModCloth, Motif Investing, NextHealth Technologies, NinthDecimal, Omada Health, Opendoor, Owler, PCH International, Policygenius, Prevedere, Qubole, Qventus, Ritual, Science Exchange, Second Measure, Sensay, Shape Security, Silk Road Medical, Simpplr, SketchDeck, SlashNext, Smilo, Snaproute, Sojern, Spotify, StellaService, Stratim, Talkspace, TigerText, TrustID, Uber, Udemy, VisitPay, World View and Zenoti.

In India, Norwest's venture investments include such companies as Appnomic Systems, Asian Genco, Attune, Capillary Technologies, Cholamandalam Investment and Finance Company (Chola), CRMNEXT, iProf Learning Solutions, Manthan Systems, NationWide Primary Healthcare Services, NSE, Nueclear, Ovum, Pepperfry, Perfint, Quikr, RBL Bank, RevX, Sadbhav, Sulekha, Suvidhaa, Swiggy and Thyrocare.

In Israel, Norwest's venture investments include such companies as CyberX, Cynet, Gong, Kwik, Personali, Pontis, SundaySky, Weka.io and Wiliot.

Growth equity investments: Norwest's growth equity investments include ACL Services Ltd., Appriss, Avetta, Bailey44, Blue Cloud Pediatric Surgery Centers, Cority, iCardiac, Infutor, Kendra Scott Design, Manta, Medgate, Outcome Health, Rainmaker, Rivermend Health, The Learning Experience, Topo Athetic, Turnitin and Wine Access. In India, Norwest's growth investments include Asian Genco, Cholamandalam Finance, Kishlay Foods, National Stock Exchange of India, Nueclear Networked Imaging Centres, RBL Bank, Sadbhav Engineering Ltd., Shriram City Union Finance and Thyrocare.[18]

By sector

Enterprise, cloud and IT infrastructure: Norwest investments include 6 River Systems, 8th Wall, Act-On, Adaptive Insights, Agari, Aporeto, Appriss, Attune, Bitglass, BlueJeans Network, Borqs, Bracket Computing, Brite Semiconductor, Capillary Technologies, ClearData, CognitiveScale, Cority, CRMNEXT, Dtex Systems, Engagio, Exabeam, Extole, Fireglass, Glint, Gong, HealthCatalyst, Infutor, Manthan Systems, Mist, MobileIron, Personali, Prevedere, Qubole, Qventus, Rainmaker, Rallyteam, Science Exchange, Second Measure, Shape Security, Simpplr, SlashNext, Snaproute, TigerText, Turnitin, Velostrata, Weka.io, WorldView, and Zenoti.

Consumer/internet: Norwest investments include Bailey44, Button, Casper, Extole, Fab, Galore, Hobnob, HoneyBook, IFTTT, JoyRun, Kendra Scott, Kwik, Lending Club, Lumosity, Madison Reed, Manta, Minted, Modsy, Motif, NinthDecimal, Opendoor, Owler, PCA Skin, Pepperfry, Personali, PolicyGenius, Quikr, Rafter, RevX, Ritual, Second Measure, Sensay, SketchDeck, Smilo, Sojern, Spotify, StellaService, Stratim, Sulekha.com, SundaySky, Suvidhaa, Swiggy, Talkspace, Topo Athletic, Uber, Udemy, and Wine Access.

Healthcare: Norwest investments include Attune, Blue Cloud Pediatric Surgery Centers, CareCloud, ClearData, HealthCatalyst, iCardiac Technologies, iRhythm Technologies, NationWide Primary Healthcare Services, NextHealth Technologies, Nueclear Networked Imaging Centres, Omada, Outcome Health, Ovum, Perfint, Qventus, RiverMend Health, Science Exchange, Silk Road Medical, Talkspace, Thyrocare, and TigerText.

Initial public offerings

Norwest-funded companies that have filed for an initial public offering (IPO) include iRhythm Technologies (Nasdaq: IRTC), FireEye (Nasdaq: FEYE) and Apigee (Nasdaq: APIC) in 2016; Lending Club (NYSE: LC), Intersect ENT (Nasdaq: XENT) in 2015; and MobileIron (Nasdaq: MOBL) in 2014.

In India, Thyrocare Technologies (NSE: THYROCARE) and RBL Bank (NSE: RBLBANK) filed for IPO status in 2016. Sadbhav Engineering Ltd. (NSE: SADBHAV) filed in 2015, and Snowman Logistics (NSE: SNOWMAN) filed in 2014.

Israel-based SolarEdge filed in 2015 (Nasdaq: SEDG).[19]

Mergers and acquisitions

Norwest-funded companies that have merged or that have been acquired include:

  • The Learning Experience was acquired in July 2018 by Golden Gate Capital.[20]
  • Adaptive Insights was acquired by Workday for $1.55B in June 2018.[21]
  • Rallyteam was acquired by Workday in June 2018.[22]
  • Google announced its intent to acquire Velostrata on May 9, 2018.[23]
  • Avere Systems was acquired by Microsoft in January 2018.[24]
  • iCardiac was acquired by ERT in December 2017.[25]
  • PCA SKIN's acquisition by Colgate-Palmolive was announced in December 2017.[26]
  • Capsugel was acquired by Lonza_Group in July 2017.[27]
  • Fireglass was acquired by Symantec in July 2017.[28]
  • RetailMeNot was acquired by Harland Clarke Holdings in May 2017[29]
  • Turn was acquired by Singtel's digital ad division Amobee in 2017 for $310M.[30]
  • Skyward was acquired by Verizon in February 2017. Terms of the transaction have not been disclosed.[31]
  • Seculert was acquired by Radware in January 2017.[32]
  • Apigee was acquired by Google in November 2016 for approximately $625M.[33]
  • Palerra was acquired by Oracle in September 2016.[34]
  • Jet.com was acquired in August 2016 by Walmart Stores for approximately $3B.[35]
  • Ravello Systems was acquired by Oracle for approximately $500M in March 2016.[36]
  • Clarus Commerce was acquired by Trivergance, LLC in March 2016.[37]
  • 1010data was acquired by Advance in August 2015 for $500M.[38]
  • Skybox Imaging (now Terra Bella) was acquired in June 2014 by Google for approximately $500M.[39]
  • Misfit Wearables was acquired by Fossil Group for approximately $260M in November 2015.[40]
  • Elemental was sold to Amazon in September 2015 for $296M.[41]
  • RiseSmart was sold to Randstad for approximately $100M in September 2015.[42]

Other mergers and acquisitions included the sale of online marketing firm AdChina to Alibaba Group (NYSE: BABA),[43] the acquisition of map tech startup deCarta by Uber,[44] the sale of video advertising company true[x] to 21st Century Fox,[45] the sale of software-defined networking startup ConteXtream to HP,[46] software-defined networking company Cyan Inc. to Ciena,[47] predictive analytics for retail businesses The Retail Equation to Appriss,[48] big data startup Hadapt to Teradata,[49] and the merger of Pertino with Cradlepoint.[50]

See also

References

  1. ↑ Norwest Venture Partners raises $1.5 billion fund. TechCrunch, February 14, 2018.
  2. ↑ Norwest Venture Partners Closes $1.5 Billion Fund, NVP XIV Norwest press release, February 14, 2018
  3. ↑ Richard Florida (Carnegie Mellon University) and Martin Kenney (Ohio State University). Venture Capital and High Technology Entrepreneurship. Elsevier Science Publishing Co, 1988
  4. ↑ Norwest Equity Partners - Our History , accessed July 17, 2017
  5. ↑ EXECUTIVE CHANGES: Norwest Venture Capital Management. The New York Times, November 28, 1988
  6. ↑ George J. Still, Jr. Crunchbase, accessed September 25, 2017
  7. ↑ Bloomberg - George J. Still Jr.
  8. ↑ Norwest Raises Third Consecutive $1.2 Billion Fund in Five Years , TechCrunch, January 20, 2016
  9. ↑ Crunchbase, accessed January 8, 2018
  10. ↑ Venture firm Norwest raises $1.5 billion fund, its largest ever , Reuters, February 14, 2018
  11. ↑ Company Overview of Haque Family Partners, Bloomberg, September 25, 2017
  12. ↑ Jeffrey M. Crowe - Executive Profile & Biography, Bloomberg, accessed September 25, 2017
  13. ↑ Jon Kossow - Crunchbase profile, accessed February 14, 2018
  14. ↑ George Still Forbes Midas List, 2011
  15. ↑ company website(accessed January 8, 2018).
  16. ↑ Jeff Crowe Forbes Midas List 2018
  17. ↑ Norwest Venture Partners Promotes Jon Kossow to Managing Partner Norwest press release, February 14, 2018
  18. ↑ Norwest Venture Partners Crunchbase, accessed January 8, 2018
  19. ↑ EDGAR Online, accessed 02-06-17
  20. ↑ Golden Gate Capital Acquires The Learning Experience, a National Franchise and Academy of Early Education BusinessWire, July 2, 2018
  21. ↑ Workday to Buy Adaptive Insights for $1.55 Billion The Wall Street Journal, June 11, 2018
  22. ↑ Workday acquires Rallyteam to fuel machine learning efforts TechCrunch, June 8, 2018
  23. ↑ Google announces intent to acquire Velostrata Google, May 9, 2018
  24. ↑ Microsoft to acquire Avere Systems, accelerating high-performance computing innovation for media and entertainment industry and beyond Microsoft, January 3, 2018
  25. ↑ ERT Acquires iCardiac Technologies ERT press release, December 4, 2017
  26. ↑ Colgate Announces Acquisition of PCA Skin and EltaMD Skin Care Brands Colgate press release, December 18, 2017
  27. ↑ Lonza Completes Acquisition of Capsugel to Create Leading Integrated Solutions Provider to the Global Pharma and Consumer Healthcare Industries Lonza press release, July 6, 2017
  28. ↑ Symantec Is Buying a Cybersecurity Startup to Protect Work Email] Fortune, July 6, 2017
  29. ↑ Harland Clarke Holdings Corp. Completes Acquisition of Digital Savings Destination RetailMeNot, Inc., May 23, 2017
  30. ↑ Singtel’s digital ad division Amobee acquires Turn for $310M TechCrunch, February 22, 2017
  31. ↑ Verizon Acquires Skyward to Simplify Drone Operations and Reduce Complexity for Operators Verizon press release, February 16, 2017
  32. ↑ Radware Acquires Seculert to Enhance Data Center Security, January 31, 2017
  33. ↑ Google will acquire Apigee for $625 million TechCrunch, September 8, 2016
  34. ↑ Oracle buys Palerra to boost its security stack TechCrunch, September 18, 2016.
  35. ↑ Walmart is buying Jet.com for $3 billion TechCrunch, August 7, 2016
  36. ↑ Oracle buys cloud software startup Ravello Systems for $500 million, source says VentureBeat, February 22, 2016
  37. ↑ Norwest Venture Partners sells Clarus Commerce PE Hub Network, March 23, 2016
  38. ↑ In Big Data Deal, Advance/Newhouse Acquires 1010data for $500M Wall Street Journal, August 3, 2015
  39. ↑ Google Buys Skybox Imaging -- Not Just For Its Satellites, Forbes, June 10, 2014
  40. ↑ Fossil Group to Buy Misfit for $260 Million Wall Street Journal, November 12, 2015
  41. ↑ Amazon Acquires Elemental Technologies For A Reported $500 Million In Cash TechCrunch, September 3, 2015
  42. ↑ Randstad Acquires Outplacement Innovator RiseSmart to Complement Portfolio and Drive Technological Disruption in the Global HR Services Landscape PR Newswire, September 25, 2015
  43. ↑ Alibaba buys controlling stake in digital marketing firm AdChina Reuters, January 13, 2015
  44. ↑ Uber Is Acquiring Mapping Company deCarta Forbes, March 4, 2015
  45. ↑ 21st Century Fox to Acquire Ad Tech Firm TrueX for $200 Million The Wall Street Journal, December 17, 2014
  46. ↑ HP buying SDN company for NFV Network World, May 26, 2016
  47. ↑ Ciena closes Cyan acquisition, begins integration Lightwave Online, August 3, 2015
  48. ↑ Appriss buys The Retail Equation PE Hub, August 19, 2015
  49. ↑ Teradata Acquires Hadapt, Revelytix For Big Data Boost InformationWeek, July 22, 2014
  50. ↑ Cradlepoint Buys Pertino in SD-WAN Deal eWeek, December 8, 2015

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