Lessons from Nirav Tolia at Nextdoor
Great products are built and designed for a mobile world. Nextdoor modernizes the role of neighborhoods. The whole business is a nod to the importance of “where are you from?”
A couple of notes on Nextdoor:
- Serious Moat: Neighborhoods are “private” — you can’t dial into a neighborhood when you fly around the country. You get invited and it grows organically. This business model doesn’t “go viral.” It grows piece by piece (you have to verify your address and put your real name in), which makes it hard for new entrants to offer a better value proposition. Nextdoor has already captured majority (>75%) market share positions in key cities.
- Not a Treadmill Business: A treadmill business is one where you have to go out and make your money every single day. To an extent, every business requires you to go out there and make it happen, but a business that sees utilization because the value proposition is continuous is wonderful. Also: Nextdoor has automated new pilot neighborhood creation, allowing for this piece-by-piece growth to scale.
- Monetization Path: Nextdoor achieved the two building blocks of monetization: 1.) clear reason for new customers to join private network, 2.) non-creepy reason for continuous engagement. Among its client base, Nextdoor hasn’t achieved tooth-brush status, but sees user engagement every other day.