Neighbor.com raises $10 million

Neighbor , the self-storage marketplace, announced it has closed a $10 million Series A round led by Andreessen Horowitz. Jeff Jordan, managing partner at Andreessen Horowitz and former eBay, PayPal and OpenTable executive who currently sits on the boards of Airbnb, Instacart, Lime and Pinterest, will join the Neighbor Board of Directors. Other investors in this round include Nate Bosshard, former partner at Khosla Ventures and co-founder of Tonal, as well as Ryan Graves, Uber’s first CEO.

Founded in 2017, Neighbor connects people in need of storage space with hosts in their neighborhood who are willing to lease extra storage space in their home or garage. From college students storing a box in a neighbor’s closet for $20 per month to a homeowner storing a classic car in their third car garage for $400 each month, the Neighbor marketplace “saves renters an average of 50% on traditional storage costs” and creates residual income for hosts. Some Neighbor hosts make as much as $25,000 per year, all in passive income that requires little to no work.

In terms of insurance, Neighbor offers a $2 million Host Guarantee which is secondary to any applicable insurance policies – lack of sufficient insurance coverage on the part of both the host and renter is required to be eligible for the guarantee.

“The self-storage industry in the United States will eclipse $40 billion in revenue in 2020, capping off a decade of astronomical growth that we believe is firmly related to the burdensome costs of homeownership and the increasing premium placed on space. Neighbor.com provides individuals with a practical, safe and reliable platform to capitalize on extra residential space in local communities and tap into this national storage revenue themselves with truly passive income streams. This funding round is a major step toward building the Neighbor marketplace across the United States and beyond, creating a fair, common-sense storage marketplace in every community.” – Joseph Woodbury, CEO of Neighbor.

“Neighbor has a lot of the attributes that first attracted me to the Airbnb investment – economic empowerment for the hosts, a superior value proposition for the guests in a huge market, and better leveraging existing infrastructure in a sustainable way. I look forward to supporting their efforts to build a comparable company.” – Jeff Jordan, managing partner at Andreessen Horowitz.

Bottom Line: Like a good neighbor, Neighbor is there.