NGP Capital raises USD 400 million from Nokia to invest in growth companies

NGP Capital, a global venture capital firm that invests in growth-stage technology companies, has raised a new venture investment fund of USD 400 million from Nokia on 3 February 2022.

About Fund: This is the fifth fund that NGP Capital has managed for Nokia, and the latest investment brings the fund’s total committed but uninvested capital to over USD 550 million and total commitments from Nokia since the fund’s inception to over USD 1.6 billion.

Investor: Founded in 1865 by Fredrik Idestam, Leo Mechelin and Eduard Polón, Nokia is a leading vendor in the telecommunications equipment industry. The startup’s network business derives revenue from selling wireless and fixed-line software, hardware and services. Nokia’s technology segment licenses its patent portfolio to handset manufacturers and creates royalties from Nokia-branded cellphones. 

The Objectives behind the funding: The new funds will be deployed to invest in promising growth companies, focusing on Cybersecurity, Edge Cloud, Digital Transformation and Digital Industry in the US, China and Europe.

About NGP Capital

Founded in 2005, NGP Capital is a venture capital investment firm headquartered in Palo Alto, California. With over USD 1.6 billion under management, NGP Capital presently holds a portfolio of 51 investments, including Shippeo, Getaround, Perception Point, Immuta and more. Since its inception, the company has invested in 107 companies and has exited fully or partially from 62 investments. With offices in the US, Europe, India and China, NGP Capital invests in growth-stage technology companies within Cybersecurity, Edge Cloud, Digital Transformation and Digital Industry. NGP Capital portfolio companies typically exit through M&A transactions (about 80%), while about 20% have exited through IPOs.

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 has partnered with The Upright Project, a European organization that assesses the societal impact of its investments.

What the Fund’s Managing Partner has to say:

Bo Ilsoe, NGP Capital’s Managing Partner, comments: “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.”

What the Nokia’s team has to say:

Nishant Batra, Chief Strategy and Technology Officer, said: “A commitment to innovation is an integral part of Nokia’s strategy. Sustainable technology leadership requires us to anticipate, shape, and invest in the next technology windows. Our relationship with NGP provides a powerful avenue to explore external opportunities that support the execution of Nokia’s vision of the 5G era and beyond.”

For more extensive analysis and Market Intelligence reports feel free to approach us or visit our website: Venture Capital Market Intelligence Reports | VCBay.

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