Nextdoor Said to Raise Capital at $500 Million Valuation
Nextdoor.com Inc., a social-networking site for neighborhoods, raised $60 million in a funding round led by Kleiner Perkins Caufield & Byers and Tiger Global Management to hire more engineers and expand overseas.
The investment values the San Francisco-based company at more than $500 million, according to people with knowledge of the matter, who asked not to be identified because the valuation isn’t public. John Doerr, an early backer of Amazon.com Inc. and Google Inc., led the investment for Kleiner Perkins, Nextdoor said today in a statement.
Nextdoor Chief Executive Officer Nirav Tolia is betting that in keeping neighborhood networks private and by verifying residents, the company will fare better than other hyper-local sites that have shuttered or scaled back. AOL Inc. has cut jobs at its local Patch blogs, while Comcast Corp. shut down its EveryBlock local project earlier this year.
“This has a viral component,” Doerr said in an interview. “The more neighbors on in your neighborhood, the more useful it is and the more you post.”
Doerr said that in his Palo Alto, California neighborhood, one resident asked for a recommendation for a landscape designer and someone else posted a Stanford University crime report.
While Nextdoor hosts networks for 22,500 neighborhoods on its site, a five-fold increase in the past year, the company hasn’t yet settled on a business model. Nextdoor has raised $100 million since mid-2012 from investors including Benchmark, Greylock Partners and Shasta Ventures. Comcast Ventures also joined this round of financing, the statement said.
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