Nextdoor competes with other social networks. It differentiates itself from Facebook, for example, by limiting the potential people in each network, so presumably improving privacy. It has been characterized by The Washington Post as part of a "wave" of community focus in the United States. They also hope to capitalize on what they perceive to be a widespread longing for local community at a time when online social networks are widely used. The site was in beta testing in 176 neighborhoods until October 2011.
Nextdoor's business model is based on selling advertising to local businesses. Nextdoor also hopes to facilitate exchange of goods and services in a manner similar to Craigslist. They believe, however, that users will be more comfortable trusting other verified users than they would trusting sellers on Craigslist. Recommendations of area resources are also provided. Chenda Ngak of CBS News has compared the site to a "College Bulletin Board".
Before registering an account, prospective users verify their home address. Verification methods include providing a credit card or confirming a code mailed or phoned to the prospective user. Nextdoor provides registered users with a list of neighbors who have also registered (users are required to provide their real name). Nextdoor allows users to see which nearby residents are registered on the site, and to send postcards advertising the site to non-registered neighbors. Nick Wingfield of The New York Times worried that the site may "be used to publicly shame" neighbors or lead to "snarky messages" between residents. Nextdoor leadership has maintained that the presence of real names helps maintain civil behavior among users.
Nextdoor was co-founded by Nirav Tolia, who based the company in San Francisco, California. Tolia had previously helped start Epinions. Early investors include Benchmark Capital, Shasta Ventures, and Rich Barton. As of February 2014, Nextdoor has 80 to 100 employees. In October 2013, Nextdoor raised $60M in venture capital funding. Dan Clancy (ex Google) joined Nextdoor as Vice President of Engineering in February 2014, and Disney's Christa Quarles joined Nextdoor as Chief Business Officer in July of 2014.
On May 14, 2014, Nirav Tolia, CEO of Nextdoor, was charged with felony hit-and-run for fleeing a crash on Highway 101 in Brisbane, California that left a woman injured. "It's ironic that the CEO of a company that is holding itself out as trying to promote neighborliness, crime watch and things like that flees the scene of an accident that he caused and doesn't bother to call 911 or stay around to exchange information or see if he caused any injuries," said the woman's attorney, Joseph Brent. The charge was reduced to a misdemeanor and Tolia pleaded no contest and was sentenced immediately to 30 days in county jail and a $239 fine.
- Delony, Doug (October 27, 2011). "New Social Network is Just for Neighbors". KRIV. Retrieved November 2, 2011.
- Ngak, Chenda (October 27, 2011). "Nextdoor is a social network for real neighbors". CBS News. Retrieved November 2, 2011.
- Flock, Elizabeth (October 27, 2011). "NextDoor and UnThink: Two upstart social networks you may want to get to know". The Washington Post. Retrieved October 29, 2011.
- Guynn, Jessica (October 26, 2011). "Nirav Tolia launches Nextdoor, private social network for neighbors". Los Angeles Times. Retrieved November 2, 2011.
- Scott, Martin (October 26, 2011). "Nextdoor comes knocking with neighborhood network". USA Today. Retrieved November 2, 2011.
- Chapman, Glenn (October 27, 2011). "Nextdoor launches neighborhood social networks". AFP. Retrieved November 2, 2011.
- Nick, Wingfield (October 26, 2011). "There Posts the Neighborhood". The New York Times. Retrieved November 2, 2011.
- Lee, Ellen (March 2, 2012). 2, 2011 "Nextdoor offers online forum for neighborhoods". San Francisco Chronicle.
- Isaac, Mike. "Nextdoor Taps Google Vet Dan Clancy for VP of Engineering Post". www.recode.com. Re/Code.
- Barr, Allistair. "Nextdoor raises $60 mln from Kleiner, Tiger Global". www.usatoday.com. USA Today. Retrieved 29 July 2014.
- Del Ray, Jason. "Nextdoor Hires Disney’s Christa Quarles as Chief Business Officer". www.recode.net. Re/Code.
- Lee, Henry K (May 14, 2014) "Police-friendly tech CEO charged with hit-and-run." San Francisco Chronicle. (Retrieved 4-17-2014.)
- Ellen Huet (June 13, 2014). "Nextdoor CEO Nirav Tolia Pleads No Contest To Reduced Charge In Hit-And-Run". Forbes. Retrieved June 22, 2014.
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