Called Norwest Venture Partners X, LP, the fund is targeted at early, mid and late stage investments. The fund plans to tap emerging growth opportunities in the global information technology sector.
The firm has also made two direct investments in India during the last five months, and will be announcing more investments in the first half of 2006.
NVP X will focus on 'cross-border' investments in the US, India and Israel. The fund will continue to concentrate on the broad investment opportunities in the consumer, mobile and media sectors in India.
"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 US and India," said Promod Haque, managing partner at NVP.
This is the largest fund the company has raised and 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 over the past three years alone, NVP's portfolio companies have generated more than $1.7 billion in exit values.
"The convergence of such trends as globalisation, consumer driven technology, mobility and increased broadband penetration in emerging markets such as India, makes this a diverse and vibrant investing climate," says Haque.
NVP will fuel the growth of several next-generation technology companies and partner with leading entrepreneurs to build great businesses.
NVP has invested in more than 20 'hybrid' or 'cross border' companies (companies that are headquartered in the US, but have a significant presence in India).
"While broadband and wireless penetration has greatly increased in India in the past few years, the rate of adoption will still continue to rise significantly. The opportunity for additional penetration combined with a sizeable middle class that has tremendous spending power makes today's investment landscape in India extremely promising," says Haque.
