Neighborhood Social Network Nextdoor Raises $21.6 Million

Posted Feb 12, 2013

Nextdoor is a San Francisco based social networking company that is used for neighbors to connect with one another.  Nextdoor has raised $21.6 million in a recent round of funding led by Greylock Partners.  Greylock partner David Sze will be joining the Greylock board of directors following the round of funding.  New investors in this round include Google Ventures and Bezos Expeditions.  Existing investors Benchmark Capital and Shasta Ventures also participated in this round.  Nextdoor has raised a total of $40.2 million.

Nextdoor started in 2011 and is used by 8,000 neighborhoods across 50 states.  The neighborhood was started by someone that specifically lives in a certain area and they recruited at least 9 other neighbors to join.  Only people that live in a neighborhood and everyone has to use their real identity.  This way the quality of the conversations that take place on the website are high.

Nextdoor verifies your identity by checking your credit card record or making an automated phone call to your home number.  They can also send you a postcard to your address with a verification code on it.  Nextdoor CEO Nirav Tolia told the New York Times that the company sends out around 15,000 postcards per day.

The website is generally used for recommendations like good mechanics and baby sitters.  Some of the top categories are about a local break-in and other safety issues.  Essentially Nextdoor is used by people who often times do not know each other even though they live in close proximity.

[Source: NYT]