Quick Take
Neighborhood social networking company Nextdoor (NDOOR) is a growing startup valued at over $1 billion.
The firm operates a website that enables members who live in close proximity to communicate with each other, offer goods for sale and organize virtual neighborhood watches.
It appears to be pursuing an advertising model to monetize its user base, but the high valuation afforded it in 2015 may prove a very high a bar to surmount as it looks to provide investors with a payday.
Company and Technology
San Francisco, California-based Nextdoor was founded in 2010 to provide local members with ways to increase communication to improve their communities via enabling them to create free, private social networks.
Management is headed by co-founder and CEO Nirav Tolia, who was previously co-founder and CEO of Fanbase.com, a crowd-sourced listing of professional and college level athletes.
Below is a brief overview video of Nextdoor’s system:
(Source:Nextdoor)
The company’s technology is a free app and website that focuses more on utility, i.e., neighbors communicating with each other to plan events, garage sales and trade information about suspicious activity.
Nextdoor has raised at least $210 million in four financing rounds since July 2012 from top tier investors such as Benchmark, Kleiner Perkins, GV (GOOG), Comcast (CMCSA) and numerous others.
The firm’s valuation, as of its most recent round in early 2015, was believed to be $1.1 billion, according to the database CB Insights.
Market and Competition
The market for hyperlocal information providers is varied and can range for local email lists to Facebook (FB) or Yahoo Groups.
Potential competitors have risen in the past, such as BlockChalk and Meetey, but are now defunct.
Other than large general purpose social networks, Nextdoor has little direct competition for its primary purpose of connecting neighbors.
However, the service also enables
