February 4, 2022

NGP Capital has raised a new venture investment fund of USD 400 million

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NGP Capital has raised a new venture investment fund of USD 400 million from Nokia. The new fund will invest in promising, growing companies, with a focus on Edge Cloud, Cybersecurity, Digital Industry and Digital Transformation in the US, Europe, and China.

This is the fifth fund that NGP Capital has managed for Nokia and today’s investment brings the fund’s total committed, but uninvested capital, to more than USD 550 million, and total commitments from Nokia since the fund’s inception (in 2005) to more than USD 1.6 billion.

“Nokia has been an amazing partner for us over 17 years and we are grateful for the continued support. The new fund is the next step for NGP Capital and builds on the experience we have from investing since 2005. Our efforts will focus mostly within the areas of Edge Cloud, Cybersecurity, Digital Industry and Digital Transformation. Target investments will be evaluated on product market fit, unit economics and technology leadership. Companies with advantages obtained through applying Artificial Intelligence, Machine Learning, Low Code, Cloud Native, Blockchain technologies and more will be prioritized.” Bo Ilsoe, NGP Capital’s Managing Partner, commented.

Bo Ilsoe has also stepped up from Partner to Managing Partner of NGP Capital. Bo has been a partner at NGP Capital since 2008 and has more than 30 years of experience in venture capital and the technology sector. “I feel blessed with the incredibly talented team at NGP and the fact that we are fortunate to continue to have the ability to attract top talent in all the regions where we operate. However, at the end of the day our success comes down to the great entrepreneurs that have the vision, courage and drive to build these high-growth companies such as Rajeev Goel of Pubmatic, Yu Yongfu of UC Mobile and Nir Erez of Moovit just to name a few.”

Since 2005, NGP Capital has invested in 107 companies and has exited fully or partially from 62 investments. NGP currently holds a portfolio of 51 investments. 17 NGP Capital portfolio companies have been or are valued more than $1 billion (so-called Unicorns).

Since the fund’s launch, NGP has - on average - made more than a dozen transactions per year, either as new investments or follow-on investments in existing portfolio companies. NGP Capital portfolio companies typically exit through M&A transactions (about 80%), while about 20% have exited through IPOs.

Exited landmark investments include, amongst others: UC Mobile, a Chinese mobile services company, which was acquired by Alibaba for $3.8 billion in 2014; Ganji, a Chinese classifieds company, which was acquired by 58.com for $3.6 billion in 2015; Moovit, an Israeli mobility services company, which was acquired by Intel for $900 million in 2020; Pubmatic, a US adtech company, which listed at a $1.5 billion valuation in 2020; Deliveroo, a last mile food delivery company, that listed at a $10.4 billion valuation in 2021.

NGP Capital’s current investment portfolio is split between 27% in Europe, 38% in the US and 35% in Asia. NGP Capital’s portfolio companies had approximately $2.5 billion in revenue in 2021, with an average growth of 40% YoY. Those companies employ over 10,000 people, and at present there are 1,800 open job positions across the NGP portfolio.

NGP Capital continues to use its proprietary AI-powered "Q" platform to find target companies to augment its investment portfolio. “Q” scans and ranks more than 2 million companies around the world in the fund's chosen investment areas on a continuous basis. There are currently around 700 growth parameters for each company, with more being added all the time.

NGP Capital consists of a globally engaged team, operating across three continents to create value for its portfolio. NGP Capital’s seven global partners have over 200 years of technology and investment experience between them. The partners are supported by thematic teams, who review industry trends and investment prospects on weekly and biweekly cycle; analysing investments through a global lens and leveraging pattern recognition across different markets. This structure has created unparalleled sector experience and a team made up of entrepreneurs, investors, and industry insiders.

NGP Capital’s ongoing partnership with Nokia:

Launched in 2005 NGP Capital has worked as an arm’s length investor in an exclusive partnership with Nokia Corporation. NGP Capital has from the outset had a global outlook and presence, and has invested successfully in Europe, China, India and the US, the most competitive and innovative markets in the world. NGP Capital and Nokia’s partnership combines the best of a financially disciplined investor, coupled with the insights, and reach of a global corporate technology leader.

The objective of NGP Capital’s fund is to generate attractive financial returns, while finding and investing in private companies that are strategically relevant to Nokia. Upwards of 40% of NGP Capital’s portfolio are working with Nokia or have worked with Nokia previously. NGP Capital operates together with Nokia’s Innovation Framework strategy around 5G and will help Nokia to expand into new markets and ecosystems, which are complementary to the current business.

Ilsoe explains: “NGP Capital always look for capable and preferably repeat entrepreneurs with a winning attitude, whose ambition it is to take their company global. We back entrepreneurs with a bold vision, who offer something unique, and have an ambition to move the needle in their respective industries. It is the best way to make financially smart investment decisions. When we align these companies with insights from and access to Nokia, we believe it creates a winning combination. We believe that financially successful growth companies are in the best position to support Nokia strategically. ‘One needs to do well to do good’.”

About NGP Capital

NGP Capital is a global venture capital firm with over $1.6 billion under management, investing in growth-stage technology companies within the Edge Cloud, Cybersecurity, Digital Industry, and Digital Transformation. NGP Capital backs entrepreneurs building a responsible and inclusive world where the confluence of sensors, mobility, software, and cloud solutions will connect people and industries in new ways, transforming how we live and work. Since 2005 NGP Capital has invested in more than 100 companies, 17 of these have achieved unicorn status. NGP Capital is active in the U.S., Europe, and China. Visit us at www.ngpcap.com and follow us on LinkedIn (ngp capital) and Twitter (@ngpcapital).