Norwest Partner Tests Founders' Sales Ability Before Investing
Venture capitalist Sean Jacobsohn of Norwest Venture Partners prioritizes founders' sales capabilities before investment decisions. He identifies opportunities to disrupt legacy software providers in finance and HR.
Sean Jacobsohn, a partner at venture capital firm Norwest Venture Partners, emphasizes testing founders' sales abilities as a key criterion before committing capital. Jacobsohn focuses on backing next-generation business applications that challenge entrenched legacy players, particularly within finance and HR software.
Jacobsohn, who previously held senior roles at HR software startups like WageWorks and Cornerstone OnDemand, joined Norwest in 2014. His investment focus is on enterprise software, leveraging his background in finance and business development. His active portfolio spans companies from pre-revenue to those generating over $300 million in annual revenue.
His investment thesis centers on disrupting outdated systems. Finance software remains an attractive area, as CFOs approve all software purchases, making them direct buyers of their own tools. Potential areas for disruption include ERP systems, sales tax software, and treasury management solutions.
Regarding the integration of artificial intelligence in finance functions, Jacobsohn advises caution. While AI can enhance processes, he warns against relying on it for precise calculations. "When precision, calculation, and accuracy are required, you cannot rely on AI," he stated.
Norwest Venture Partners, founded in 1961, manages $15.5 billion and has invested in over 700 companies. The firm's latest fund, raised in 2024, totals $3 billion.