Unlocking Growth with Norwest Venture Partners Thesis: Expertise and Investments

Norwest Venture Partners' thesis is centered around expertise and investments, focusing on partnering with exceptional entrepreneurs to drive growth.

The firm has a strong track record of investing in successful companies, with over 60 exits worth more than $100 billion.

Expertise is a key component of Norwest's thesis, with a focus on industries where the firm has deep knowledge and connections.

Norwest has invested in companies across various sectors, including consumer, enterprise, and healthcare, leveraging its expertise to drive growth.

Norwest Venture Partners has a diverse portfolio with 880 investments since inception, according to Crunchbase. This impressive number speaks to the firm's commitment to supporting innovative companies.

Some notable deals for Norwest include Spotify, Adaptive Insights, and Talkspace, which demonstrate the firm's ability to back successful businesses. These investments have likely provided valuable lessons for the firm's team.

With investments spanning various industries, Norwest has a unique perspective on what makes a company successful. Their experience with SaaS companies like Adaptive Insights and Udemy is particularly noteworthy.

Norwest's investment strategy has yielded impressive results, with deals in the likes of Uber, Casper, and Opendoor. These companies have disrupted their respective markets and achieved significant growth.

The firm's growth equity case studies offer valuable insights into its investment approach. By analyzing these case studies, potential investors can gain a deeper understanding of Norwest's decision-making process.

Norwest Venture Partners has a strong foundation with experienced partners who bring valuable expertise to the table. They have a total of $12.5 billion in assets under management, a significant figure that speaks to their success in the venture capital industry.

Their partners are seasoned professionals with a deep understanding of the market and a proven track record of making smart investments.

The interview process at Norwest Venture Partners is a multi-round affair that can take several weeks to complete. The number of rounds can vary, but typically ranges from 4 to 6.

You can expect to meet with both junior investment professionals and more senior folks, with the latter overseeing the later rounds. This is a normal part of the process, and not a cause for concern.

The entire process can take several weeks, unless you're interviewing as part of "on-cycle" or "on-campus" recruiting, in which case it may be faster.

Here's a breakdown of what you can expect during the interview process:

If you're interviewing with Norwest Venture Partners, be prepared to answer the "Why this firm?" question. This is a chance to share how your connections with firm employees and their positive characteristics influenced your application.

Researching the firm is key to answering this question. Listen to interviews with its founders, investors, and employees to gain insights into their vision, strategy, and recent activities.

The firm's founders, Sean Jacobsohn and Scott Beechuk, are worth learning about. They're Partners at Norwest Venture Partners, and their experiences and perspectives can give you a deeper understanding of the firm's culture and values.

We've seen Norwest Venture Partners successfully invest in companies like LinkedIn and ServiceNow.

Their thesis on the importance of customer acquisition costs has been put to the test in the case of LinkedIn, which demonstrated a strong ability to scale its sales and marketing efforts.

In the case of ServiceNow, Norwest's investment helped the company achieve significant revenue growth, with a compound annual growth rate of 50% over a five-year period.

Udemy's impressive growth is a testament to the power of online learning. Over 300% revenue growth in the past 12 months is a remarkable achievement.

The platform has seen tremendous expansion since 2010. Every month, 1,000 new online courses are created and uploaded in ten languages.

This rapid growth is fueled by the dedication of over 8,000 experts who have joined to educate and share their knowledge. Average instructors are making $7,000 on Udemy.

Here are some key statistics that highlight Udemy's success:

Udemy's international presence is also noteworthy, with students from more than 190 countries. The platform has allocated its funding to expand its international presence, improve product offers, and broaden its course library.

Case studies are a common interview practice used by firms to assess candidates' technical knowledge and communication skills.

Interviewees often have to conduct a case study during interviews.

Firms use case studies to evaluate a candidate's ability to think critically and solve problems.

Most case studies at firms like Norwest Venture Partners will have you perform financial modeling and investment recommendations.

For junior roles, a cold calling case study may also be required.

Check out my Growth Equity Interview Guide to better understand and prepare for case studies.

Norwest Venture Partners offers a competitive salary and compensation package to their employees.

The median total pay for analysts at Norwest Venture Partners is $97,822, according to Glassdoor's records.

This figure can vary depending on the candidate's experience, education, and skills.

Associates at Norwest Venture Partners can expect a median total pay of $102,595.

Norwest Venture Partners has just raised its largest fund in its 57-year-history, a $1.5 billion fund that brings the firm's total under management to $7.5 billion.

The firm closed its previous fund, Norwest Venture Partners XIII, in January 2016, which was also a $1.2 billion fund.

Norwest aims to invest primarily in the consumer, enterprise, and healthcare categories with this new fund.

The firm has made 80 new and follow-on investments across diverse stages and sectors since closing its previous fund.

80% of Norwest's portfolio is comprised of U.S.-based companies, with recent successes coming out of countries such as India and Israel.

Norwest's notable investments include global e-commerce platform Jet.com, which was acquired by Walmart in 2016 for $3.3 billion.

The firm has achieved a record past two years, with liquidity events for 30 of its portfolio companies.

Norwest seeks to target "businesses that have been bootstrapped, that are already profitable", which are "rarely" found in the California tech hub, according to Norwest managing partner Jeff Crowe.

The firm will use the new fund to keep up with the growing size of checks from funds such as SoftBank's $100 billion Vision Fund.

At Norwest Venture Partners, the team has a deep understanding of growth stage expertise, thanks in part to their extensive network of experienced professionals.

One notable example is a coach and assistant who has worked with hundreds of candidates recruiting for growth equity and VC.

This individual has a unique blend of experience, having worked as an investor at General Atlantic and as an operator in a portfolio company at Airbnb.

Their background also includes time as an i-banker at Deutsche Bank and as an advisor in the Obama Administration.

They've also earned an MBA from Wharton, providing a strong foundation in business and finance.

Their diverse experience and expertise make them a valuable asset to the Norwest Venture Partners team.