Home Featured Nextdoor IPO

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.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.