Founded in 2010, Nextdoor aims to connect people who live in the same, or nearby, neighborhoods together by creating a forum for them to communicate digitally. Its presence has grown over time (I’ve personally used it for years!) and currently, people in over 236,000 neighborhoods are using the platform.
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Existing backers Benchmark, Tiger Global Management and Kleiner Perkins also put money in this latest round, which also included “new participation” from an unnamed large global asset manager. The financing brings San Francisco-based Nextdoor’s total raised to $408.2 million since its inception, according to its Crunchbase profile.
Its valuation increases to over $2 billion with the funding, the company confirms. When I asked about growth metrics, a spokeswoman only said that Nextdoor expects “revenue to double again in 2019.” The company makes money from a combination of sponsored posts as well as a real estate vertical that allows agents to brand themselves as local experts in the neighborhood.
In its press release, Nextdoor said it’s planning to use its new capital toward growing internationally, having just launched in Sweden and Denmark. The company also wants to expand its existing footprint in the United States, United Kingdom, Germany, France, the Netherlands, Italy, Spain and Australia. It said it plans to grow “three times faster across Europe” in 2019 than it did last year.
CEO Sarah Friar in a blog said Nextdoor will also be focusing on local businesses in 2019.
“When they thrive, communities thrive, and there is so much we are uniquely positioned to do for them,” she wrote. “Helping build their reputation, attract new customers, and improve customer loyalty will ultimately drive more sales to the local businesses that are core to our communities.”
As part of the latest round, Chris Varelas, co-founder and managing partner of Riverwood Capital, will join Nextdoor’s board. In the press release, Varelas said Riverwood believes Nextdoor “represents the future of local community and commerce.”
“This investment reflects our collective belief in the power and opportunity in this space, and the Nextdoor team,” he added.
Illustration: Li-Anne Dias