Nextdoor, a platform founded 15 years ago, aimed to create a space for local community conversations, distinguishing itself from larger social media networks. For years, it thrived, offering everything from lost pet alerts to neighborhood business recommendations. However, growth slowed down as users became disengaged, and problems like misinformation, racism, and petty arguments took over, affecting the platform’s overall appeal.
Nirav Tolia, the company’s founder, returned to lead Nextdoor after being ousted in 2018 following disagreements over a potential acquisition. After Nextdoor went public in 2021 at a $4.3 billion valuation, it faced stagnating growth and a decrease in advertiser interest. As a result, the board called Tolia back in 2023 to help steer the company forward. Tolia, who is also the largest individual shareholder of the company, has a strong personal and financial stake in its success, with Nextdoor’s market cap currently at around $1 billion.
Tolia’s plan to turn things around involves refining the product to better meet user needs and enhance community engagement. He aims to introduce more diverse content sources, such as local businesses, schools, and news publishers, to supplement the platform’s reliance on user-generated content. This shift aims to broaden the platform’s value and help users stay informed about local happenings.
Addressing concerns about the platform’s toxic environment, Tolia acknowledges the challenge of maintaining constructive conversations without suppressing free speech. He is optimistic about leveraging AI technology to create a safer and more positive user experience. For instance, AI-powered “kindness reminders” will notify users to rephrase inflammatory posts before they are published, helping to curb negativity.
Tolia stresses that Nextdoor is not interested in selling its data to third parties like OpenAI or Google. Instead, the company plans to keep its proprietary content in-house, as he believes the platform’s unique content is key to its value proposition.
Reflecting on his return to the company, Tolia clarifies that the decision to bring him back was not driven by a single person, but by the company’s need for a course correction after disappointing growth and stock performance. He holds a strong relationship with Bill Gurley, a longtime board member, and they have discussed the challenges of running a public company.
When asked about the possibility of taking Nextdoor private, Tolia acknowledges that private companies allow for more long-term planning, but argues that staying public is essential for achieving the platform’s potential. He also points to the struggles of being a subscale company with a market cap below $3 billion, making it difficult to attract larger institutional investors.
Tolia’s goal is to prove Nextdoor’s worth by delivering a better product for users and advertisers, which will, in turn, improve the company’s financial performance and set it on a path to greater success.
