26 Mar 2021
LEHI, Utah, March 24, 2021 /PRNewswire/ -- To capture massive demand for self storage by repurposing under-utilized space, Neighbor, the self storage marketplace, earlier this week announced it has closed a $53M Series B funding round led by the largest fund focused on global real estate and proptech, Fifth Wall. With support from returning investor Andreessen Horowitz and additional funding from DoorDash CEO Tony Xu and StockX CEO Scott Cutler, who will join former Uber CEO Ryan Graves and Overstock CEO Jonathan Johnson as investors and advisors to Neighbor.
As a relative newcomer to the $40B self-storage industry, Neighbor is shaking up this antiquated and dusty sector by democratizing access to self-storage income and space. Without any new construction or existing infrastructure, Neighbor is quickly adding new square footage to the market by inviting commercial and residential property owners to turn under-utilized or vacant areas into meaningful passive income opportunities. For users, these self-storage solutions are priced approximately 40-50% less than traditional storage facilities.
In addition to leading the round, Fifth Wall has facilitated opportunities for Neighbor to partner with the firm's extensive roster of strategic LPs -- 65+ of the world's largest owners and operators of real estate from 15 countries. Fifth Wall partners Acadia Realty Trust and Jamestown have already begun onboarding properties onto Neighbor's platform. This will add to Neighbor's burgeoning commercial real estate footprint, which grew 10X in 2020.
The Lehi, UT-based marketplace will use the investment to expand its brand footprint and user base into every corner of the U.S. With one of the top 10 Series B funding rounds in Utah's history, Neighbor has plans to make additional strategic hires and attract more tech talent to the Silicon Slopes, building on its bench of recent hires from Uber, Carta, Mercari, Instructure and Banjo.
Founded in 2017, Neighbor is a self-storage marketplace based in the Silicon Slopes of Lehi, Utah. Neighbor benefits renters by providing safer, more accessible storage for half the price of a traditional self-storage unit, while giving hosts the opportunity to earn thousands of dollars per year from their unused space. Neighbor's team helps keep the connection safe, easy and friendly and provides an unprecedented $25,000 renter guarantee for items stored and a $1 million host liability guarantee so that good neighbors everywhere can help each other out. Neighbor's investors include leaders in real estate and marketplace experts, including Andreessen Horowitz, Fifth Wall, Wilshire Lane Partners, Pelion Venture Partners, Album Ventures and top executives from DoorDash, Uber, Overstock and StockX.
