The NFX Podcast

We believe creating something of true significance starts with seeing things others do not. NFX is a venture firm exclusively focused on pre-seed & seed stage startups.

The Inside Story of Nextdoor with Sarah Friar

E141 • Nov 18, 2021 • 48 mins

In this episode, Pete Flint converses with Sarah Friar about her career and the COVID impact on Nextdoor. They discuss crisis leadership, the power of storytelling, the evolving landscape of social networks, and building network effects in localized businesses. The conversation also touches on balancing growth, community engagement, new technologies' potential consequences, and different ways for a company to go public.

Key Points

Creating a purpose-driven company requires aligning your business's core operations with its mission statement and ensuring that all actions, including product development and community engagement, contribute to that purpose.
When hiring, prioritize candidates' intelligence and grit over direct experience, as these qualities often contribute more to a company's growth and adaptability, allowing for a more diverse and innovative workforce.
In considering public funding options for a company, it's essential to evaluate the need for capital, the potential return on investment, and the different methods available, such as traditional IPOs, direct listings, or SPACs, to determine the best path forward.

Nextdoor, the social media app for neighborhoods, which is actively used in 1 in 3 households in the U.S., was recently valued at $4.3B and listed on the NYSE last week (November 8, 2021) under the ticker symbol "KIND."

Today’s episode is a glimpse into the thoughtful, humanist view of Sarah Friar, the CEO of Nextdoor, former CFO of Square, and board member of Slack. She cautions us not to disappear into the metaverse, and also encourages today’s and tomorrow’s Founders to cure gaps in the world — and do it with eyes wide open to consequences at scale.

There’s more tension than there is harmony between “offline vs. online,” and yet one company is uniquely positioned to bridge the two for the benefit of us all.

Speakers

Pete Flint

Host • 15%

Sarah Friar

Guest • 83%

Chapters

0:00	Introduction and Sarah Friar's career journey
7:33	The impact of the COVID pandemic on Nextdoor and crisis leadership
15:13	Nextdoor as a purpose-driven company and the power of storytelling
22:32	Sponsor message
23:27	The changing landscape of social networks: the metaverse and community
29:09	Building network effects in localized businesses and overcoming the cold start problem
37:44	Balancing growth and community engagement, and the potential consequences of new technologies
41:50	Different ways a company can go public and understanding the business before IPO
47:41	Closing remarks and thanks to Sarah Friar

Transcript

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