Nextdoor, the neighbourhood social network with 250M neighborhoods in 11 countries, is looking to go public in 2021 according to people familiar with the matter. Nextdoor is eyeing a valuation between $4B and $5B in a public listing.
- Detailed instructions how to participate in Nextdoor IPO (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before Nextdoor IPO
Actual revenue figures are not cleat yet, but the firm makes money in 3 ways:
- Sponsored Ads: Local and regional businesses advertise in the newsfeed
- Neighborhood Sponsorship: Local home service experts and real estate brokers can promote themselves in certain zip codes
- Local Deals: Neighborhood businesses can advertise special offers to members in their area
During pandemic number of daily active users increased more than 80 percent month over month, the company reported.
The IPO of Nextdoor, a company preliminary valued at $2.20B, is much expected by many investors. Founded in 2008 and headquartered in San Francisco, CA, the company launched its first product in 2011, which is now available in 11 countries, including France and Germany. The product is actually a social network, where the posts are visible only to the users located nearby. Thus, its main competition is Facebook, which is also introducing additional features for the users based in the same location.
Although Nextdoor is an indirect competitor to Facebook, it is a part of the Facebook Audience Network, which means that Facebook users can post their ads on Nextdoor.
Previous Nextdoor Funding
Nextdoor has raised about $470 million from investors who include Benchmark, Greylock Partners, Kleiner Perkins, Riverwood Capital, Axel Springer and Tiger Global Management. It was valued at about $2.2 billion after a funding round in September 2019.
How to Buy Nextdoor Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Nextdoor IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Nextdoor shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Nextdoor IPO before public trading:
Below we share the instruction how to participate in the approaching Nextdoor IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Nextdoor is already listed there.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Wait for a request to participate in the IPO — when Nextdoor IPO date is defined you will get a notification (email and SMS text message) from Freedom Finance to apply for the IPO.
- Submit a request to participate in the IPO — when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
When is the Nextdoor IPO date
We will update when the exact Nextdoor date IPO is known – if you want to get notified please subscribe for updates here.
What is Nextdoor IPO price range?
The price is not defined yet.
We will update when the Nextdoor IPO offering price is known – if you want to get notified please subscribe for updates here.
Instruction How to Invest in Nextdoor after the IPO date (opening price)?
After the IPO you can buy Nextdoor stocks via Freedom24 or a commission-free trading app like eToro on the first trading day.
In what currency Nextdoor IPO and post-IPO shares will be traded?
The Nextdoor IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Transferwise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. TransferWise never hides fees in the exchange rate.
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