(Its shares are trading down by roughly one-third of their offering price as of this writing.) A third portfolio company, Udemy, began trading publicly in October after staging a traditional IPO. Two of these went out via SPAC: the real estate company Opendoor, and the digital mental health company Talkspace. Galvanize had raised around $50 million in funding led by Norwest.Ī number of Norwest’s consumer-facing investments also hit the public market.
#Norwest equity partners wells fargo software
A third portfolio company, a Canadian developer of risk and compliance software called Galvanize, meanwhile sold to corporate governance software maker Diligent for a reported $1 billion. Aporeto, a machine identity-based micro-segmentation company, sold to Palo Alto Networks for $150 million in cash in 2019 after raising around $35 million from investors, according to Crunchbase. The security outfit Shape Security, for example, sold to the application delivery company F5 for $1 billion in late 2019 after raising $183 million in funding, per Crunchbase data. While it was busy deploying its last fund, a $2 billion pool that it closed in 2019 and used to fund about 60 companies, almost 30 of Norwest’s earlier bets have “exited” in some fashion over the last couple of years. Norwest’s team also has a lot of hits about which to boast. Tiger Global just closed one of the biggest venture funds ever, with $6.7 billion (As a reminder, it closed its previous fund with $6.7 billion just six months ago.) To win deals, you need to be able to elbow out at least some of the other multibillion-dollar funds that are also writing checks right now. Consider that Tiger Global Management alone held a first close of $8.8 billion on its biggest fund ever back in October, according to Bloomberg. For one thing, on the growth equity side, it’s not possible to compete anymore unless you have a ginormous money cannon. Put another way, despite that gigantic fund announcements have become routine, this one is kind of a big deal and another indicator that this market is a very different one from even five years ago.Ĭertainly, one can see why, in a go-go environment, Wells might agree to such a commitment. It’s easy to shrug off the development, but this new pool brings the assets Norwest has raised altogether across the decades to $12.5 billion. Norwest Venture Partners, the now 60-year-old venture and growth equity firm backed entirely by the banking giant Wells Fargo, today rolled out its sixteenth fund, a $3 billion vehicle and its biggest to date.
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