Nextdoor Inc. to become public with SPAC sponsored by Khosla Ventures at $4.3B

Nextdoor Inc. to merge with a special-purpose acquisition company (SPAC) sponsored by Khosla Ventures. This will cost social-media networks to value roughly $4.3 billion.

Nextdoor operates an app that connects people to information about their neighborhoods and is active in more than 275,000 neighborhoods in 11 countries. According to the company, every 1 out of 3 households in the US uses the app.

The planned merger would generate about $686 million in gross proceeds for Nextdoor, about $270 million of which would come from a placement from funds and accounts advised by T. Rowe Price Associates Inc., Baron Capital Group, Dragoneer, and other investment firms, Nextdoor and the Khosla SPAC said.