Neighbor Inc., the online self-storage marketplace provider, stated that it had acquired $53 million in a Series B funding round on 24th March 2021. Fifth Wall, a venture capital company specializing in the international real estate industry and estate technology, leads the round.
Some new investors, such as StockX CEO Scott Cutler and DoorDash CEO Tony Xu, have joined this financing series. Additionally, Andreessen Horowitz (a16z), a Silicon Valley venture capital company, participated in the new round. Andreessen Horowitz headed Neighbor's $10 million Series A that was conducted in January 2020.
As per the reports, Neighbor plans to spend the fund on market recognition and ongoing national enlargement. Joseph Woodbury, Founder, and CEO of Neighbor stated that its revenue had increased fivefold year over year, whereas organic reservations have increased seven times YOY. He added that the firm had done a tremendous expansion the previous year, transforming into a national enterprise. Neighbor has active occupants in more provinces than the multinational self-storage firm, Public Storage.
Besides selling to urban hosts, Neighbor started broadening its commercial real estate reach the previous year, approaching companies that want to convert vacant land into income-generating storage facilities. This offers new revenue sources for landlords who are suffering due to the pandemic, which has kept many individuals at home. As a consequence of this growth in demands, Neighbor's commercial real estate base was rising tenfold in 2020. As per the source, partners Jamestown LP and Acadia Realty Trust tap resources into the Neighbor network.
Dan Wenhold, the of Fifth-wall's associate, thinks that Neighbor is a perfect match interface between the principal owners and managers of tangible real estate properties and the most competitive developments affecting those realtors and landowners. He also idolizes Neighbor to reduce the emission and wastes produced during the creation of new spaces and buildings.
Confirming its website, Neighbor is located in Lehi, Utah, and primarily provides peer-to-peer storage in America. However, listed on NASDAQ, its platform allows hosts to interact with storage seekers from all over the world. In 2018, the company obtained $2.5 million in venture capital.