Norwest, the investment firm backed solely by Wells Fargo, has raised a $4 billion fund to expand its investments in artificial intelligence (AI).
The fund is the 18th in the firm's 65-year history and its largest to date.
It takes Norwest's total money under management to $18 billion and it follows a $3 billion fund raised in 2024, since when Norwest has backed more than 85 new companies.
The new fund will invest in young and fast-growing companies in the US, India and Israel, across technology, healthcare and consumer businesses.
Norwest treats AI as a theme running through all three areas rather than a separate category.
Where the money goes
The firm plans to push further into physical AI, which powers robots and machines, as well as voice AI, cybersecurity for AI agents and aerospace.
Recent investments include Coval, which tests AI agents, and Generalist AI, which builds AI models for robots.
“Building and scaling a company has never been a linear journey, and today that journey is becoming more complex,” said Jeff Crowe, senior managing partner at Norwest.
“Companies are staying private longer, scaling across markets, and navigating critical decisions around technology, talent, and growth. Capital is only one part of what they need.
"Our role is to be a long-term partner and bring the experience, networks, and resources that can help leadership teams make those decisions with confidence.”
Crowe said Norwest was particularly interested in early-stage AI apps and infrastructure, physical AI, AI models built for specific industries, and cybersecurity.
Looking past the hype
In a blog post announcing the fund, Crowe and fellow managing partner Jon Kossow said six decades of investing teaches you to look past the hype.
They said the firm had invested through the early days of business software, the rise of the internet, and the mobile and cloud revolutions.
Norwest's past and present investments include Uber, Spotify, Plaid and Vuori, the sportswear brand now valued at $5.5 billion.
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