Local-focused Social Network Nextdoor to Go Public
By Kathi on Jul 06, 2021 | 05:36 AM IST
Nextdoor will be listed on the Nasdaq stock exchange under
the ticker symbol KIND. Nextdoor was founded in 2008 with the goal of creating
a sort of local version of Facebook. The app serves as a venue for people to
organize events, chronicle local raccoon sightings.
The neighborhood-focused social network Nextdoor said
Tuesday it would list its shares in a deal that gives it a value of some $4.3
billion.
Nextdoor, which operates as a local social network for some
275,000 neighborhoods across 11 countries, said it would become publicly traded
in a merger with a Khosla Ventures
"special purpose acquisition company" that raises $686 million.
Launched in 2011, Nextdoor allows people in neighborhoods
to connect to find dog walkers, babysitters or to share news, and saw a surge
in interest during the coronavirus pandemic when people sought out scarce
supplies, testing and vaccination locations.
"Nextdoor has been at the forefront of cultivating
'hyperlocal' communities and neighborhoods since its inception, allowing
neighbors to create meaningful connections -- both online and offline,"
said chief executive Sarah Friar.
"Our business strengthens as we scale, benefiting from
strong network effects, and we believe the proposed transaction... accelerates
the growth potential of our platform."
California-based Nextdoor claims nearly one in three US
households use the platform and operates in other countries including
Australia, Britain, France, Italy, Spain, Canada, Sweden, Denmark, Germany and
the Netherlands.
Nextdoor touts itself as a "kinder" social
network in an age where some people see abusive and hateful content on major
platforms, but it too has been fighting inappropriate content and
misinformation.
The deal calls for a merger with the Nasdaq-listed Khosla Ventures
Acquisition Co., creating a combined company listed under the ticker symbol
KIND.
The company was created by Khosla Ventures, a venture
capital firm founded by entrepreneur Vinod Khosla, specifically for this
acquisition.
New investors will pump in some $270 million to the
company, led by T. Rowe Price, Baron Capital Group, Dragoneer, Soroban Capital,
ARK Invest and ION Asset Management.
This will help fund expansion into new markets and ramp up
Nextdoor's advertising platform, according to a statement.