Do you know your neighbor? That’s the question two-year-old neighborhood-focused social media company Nextdoor is intent on answering, and it will certainly have more funds to do it. The company has announced a $60 million fundraising round, led by Kleiner Perkins Caufield & Byers and Tiger Global Management.
The company has previously raised a total of $40 million — including an $18 million Series A in 2012 and a $21.6 million Series B in early February. In addition to participation from previous investors Benchmark Capital, Greylock Partners and Shasta Ventures, Nextdoor has also received an investment from Comcast. Nirav Tolia, Nextdoor CEO, said in a statement that the money will go towards expanding Nextdoor’s reach.
“This new funding will help further our mission to use the power of technology to strengthen the neighborhood, one of the most important communities in our lives,” Tolia said.
As of now, Nextdoor’s reach is actually quite far. According to company statistics, the number of neighborhoods using Nextdoor has jumped 400% in the last year, bringing the total number of active neighborhoods on the website to more than 22,500. All told, that’s approximately one in seven neighborhoods across the U.S.
The neighborhood community isn’t quite like the block party days of the past, which is probably why Nextdoor’s earnest desire to bring the neighborhood together has resonated so well with investors. It also offers more than a traditional Yahoo or Facebook group by providing an extra step in security — a verified address. Neighbors use Nextdoor for traditional interactions, including facilitating Neighborhood Watch programs and holding community events without worrying who gets the message. But its success hinges on adoptability — you can have a neighborhood represented on the website, but its population needs to actively use it and provide resources. Otherwise, it’s a great idea without an audience.