NVP XVI brings the firm’s total capital under management to $12.5 billion.

Norwest Venture Partners, the Silicon Valley-based VC firm, closed on Norwest Venture Partners XVI, LP, a $3 billion fund to finance “paradigm-shifting” business across the consumer, enterprise and healthcare sectors. The announcement of the new fund, its biggest so far, coincided with the firm’s introduction of an ESG policy in parallel with its commitment to diversity, equity and inclusion. (CISION PR Newswire)

Norwest is a 60-year-old firm backed by Wells Fargo (NYSE: WFC).

“Valuations have gone up. Cheque sizes have gone up. I think it gives us the flexiblity to participate in any stage and to support our portfolio companies throughout their entire lifecycle,” said Norwest partner Parker Barrile to Reuters.

Norwest previously closed a $2 billion fund in November 2019. Its track record since then shows significant new investments as well as liquidity events across 29 portfolio companies.

New investments included in Classy, Dave, Devoro Medical, Fabric, Faire, ICON, Qualified, UPSIDE Foods and VanMoof.

Notable exits included Opendoor, Shape Security, VisitPay, and Five Star Business Finance.

New ESG policy

“We are excited to formalize our dedication to backing companies that also care about environmental and social sustainability with the introduction of an ESG policy in parallel with our continued commitment to diversity, equity and inclusion,” said Sonya Brown, general partner of Norwest. “We have long invested in companies capable of driving lasting change and will continue to do so with our new fund.”

Norwest’s recent investments in companies with an environmental or social focus include Classy, Grove Collaborative, ICON, Imperfect Foods, supplier.io and UPSIDE Foods.

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