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Summary
- Nextdoor is set to go public via a SPAC merger with Khosla Ventures.
- The company announced on July 6 that it is looking to go public.
- Nextdoor, a hyperlocal social media platform established in 2011, provides an interactive platform for users to interact with their neighbours.
Nextdoor, a hyperlocal social media platform in the US, is looking to go public, the company announced on Tuesday, July 6.
Instead of the traditional route of an initial public offering (IPO) though, the enterprise said that it is seeking to get listed through a merger with blank check firm Khosla Ventures Acquisition Co II (Nasdaq:KVSB).
The deal, which will include a US$ 270 million private funding from Baron Capital Group, is estimated to value the company at US$ 4.3 billion.
The special purpose acquisition company (SPAC) is managed by Khosla Ventures, a top venture capital firm based in California, the US.
A blank check company, or a SPAC, is a shell corporation used for mergers by a private company to go public. SPAC mergers have become popular over the years, although many companies still avoid it due to the risk of scrutiny from regulatory authorities and the weak investor appetite.
Nextdoor SPAC ticker, date, price and other details
Nextdoor CEO Sarah Friar and investors like Tiger Global and Hedosophia will be funding this deal. It is estimated that the combined entity will raise US$ 686 million in gross proceeds from the public debut. The money generated is expected be used for further expansion of its operations and team.
After the merger, Nextdoor co-founders and founding investor Bill Gurley will contribute a portion of their ownership to start Nextdoor Kind Foundation. This non-profit organization will invest in neighbourhoods.
How to buy Nextdoor stock?
The process of participating in upcoming IPOs has become relatively more straightforward now. Many brokerage companies enable retail investors to place a limited order of pre-IPO shares through their online trading platform. Alternatively, one can choose to consult a broker and fetch the pre-IPO shares by paying a consulting fee.
After the SPAC merger, which will likely close in the fourth quarter of this year, interest investors can explore the stocks of the combined company as the begin to trade under the ticker symbol 'KIND'.
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All you need to know about Nextdoor
The social media company was established in 2011. It provides an interactive platform for users to interact with their neighbours and seek advice on organizing local sports events, community parties or appointing babysitters.
Nextdoor was reportedly valued at around US$ 2 billion in September 2019 after a round of funding. In the form filed with the Securities and Exchange Commission (SEC), Nextdoor claimed that it had reached 275,000 neighbourhoods worldwide. In the US, one in three households' is said to access Nextdoor for trusted information.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
