Co-founder Nirav Tolia is optimistic as there is scope for yet another social network and said that just as people who use Facebook for social reasons may also used LinkedIn for professional reasons in same way neighbors want a separate service which can help them access neighbours information.
"Your neighborhood identity is different to your social identity," he said. Far from contributing to social-network fatigue, the existence of sites like Facebook would help boost interest in Nextdoor, said venture capitalist Bill Gurley, a partner at Benchmark Capital who is funding Nextdoor along with Shasta Ventures.
"Pre-Facebook, people might not understand the concept," he said. Nextdoor raised between $10-$15 million from Benchmark and Shasta, enough to sustain the company for two to three years, said Tolia.
Nextdoor has unveiled in a handful of neighbourhoods around the country on a pilot basis and now it is opened to all neighborhoods around the country. The groups are open only to residents of a particular neighborhood, and members must verify their residence, for example by entering a code they receive on a postcard mailed to their home address. Meanwhile, the site will seek advertising from local merchants to build revenue.