Local Social Network Nextdoor Raises $123 Million

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Cementing its position in the social network sector, which has generated a great deal of attention recently for its Facebook-driven barriers to entry, hyperlocal startup Nextdoor is announcing $123 million in fresh funding. The company also expands to Sweden and Denmark today, bringing its total countries of operation to 10.

Riverwood Capital led the round, which makes Nextdoor a unicorn two times over with a valuation of $2.1 billion.

Nextdoor is active in 236,000 neighborhoods around the globe, where people use it to communicate with nearby residents about local news and life updates. In this sense, it’s something of a combination of what people initially loved about Facebook—profiles tied to real identities—and a supplement to a local news scene still reeling from Facebook and Google’s dominance of digital advertising.

The digital advertising proposition for Nextdoor is obvious—what better way to drive customers into nearby brick-and-mortar stores than to generate buzz on a social platform centered on users’ physical location? Venture capitalists see the value proposition, as Chris Varelas, co-founder and managing partner at Riverwood, proclaimed Nextdoor as the “future of local community and commerce.”

Joe Zappa is the Managing Editor of Street Fight. He has spearheaded the newsroom's editorial operations since 2018. Joe is an ad/martech veteran who has covered the space since 2015. You can contact him at [email protected]