Nextdoor Social Network Digs Deep Into Neighborhoods

Isaac Gonzalez is 34 years old, married, a father and a well-regarded leader of his neighborhood association in Sacramento (CA). Local government officials and business owners know who he is. When Gonzalez weighs in on local issues, his neighbors listen. And Gonzalez’s opinions and recommendations are exactly what Nextdoor, a San Francisco-based social networking start-up, believes will be the key to expanding its network’s reach and opening a trove of revenue from local businesses and service providers.

Investors think Nextdoor is on to something. The company will announce that it has raised $110 million in venture capital from investors like Redpoint Ventures and Insight Venture Partners. The new investment values the three-and-a-half-year-old start-up at about $1.1 billion, putting the company among the sharply rising number of tech start-ups with 10-figure valuations. The investors seem to believe that there is more money to be had in small -- neighborhood-size -- communities. Consider Nextdoor a modern, more attractive version of a community email list service or Yahoo Groups, the popular message board. Users can post neighborhood news, offer items for sale, ask for help finding lost pets or organize a block party. Nextdoor also works with about 650 local government agencies that can send out citywide alerts on things like utility shutdowns in specific areas, crime alerts or emergency-preparedness tips.