By Jane Lanhee Lee
SAN FRANCSICO (Reuters) - Norwest Venture Partners, a former investor in Uber and Spotify, said on Thursday it closed its largest fund to date at $2 billion (£1.56 billion), bringing its total capital under management to $9.5 billion.
Its previous fund, which closed in early 2018, was $1.5 billion.
Jeff Crowe, managing partner at Norwest, said the larger fund size helps the firm keep its previous pace of investments.
“Deal sizes have gotten larger across the industry. And that's been true for us as well over the last couple of years. And therefore, that's one of the reasons behind the larger fund,” said Crowe.
High-profile flops of initial public offerings have some startups and investors jittery about a bubble burst, but Crowe said the latest fund was still as easy to raise as the one in 2018 thanks to its previous funds’ performances.
While Uber Technologies Inc <UBER.N> closed on Wednesday about 40% lower than its IPO price in May, Crowe said it was a good investment for Norwest. "We don't disclose how much we make on individual investment, but it was a nice multiple," he said.
According to PitchBook Data Inc and National Venture Capital Association, U.S. venture capitalists are expected to pour over $100 billion into startups for a second straight year, following the record sum invested in 2018.
(Reporting by Jane Lanhee Lee; Editing by Lisa Shumaker)