To capture demand for self-storage by repurposing under-utilized space, self storage marketplace Neighbor has closed a $53 million Series B funding round led by 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.
Without any new construction or existing infrastructure, Neighbor adds new square footage to the market by inviting commercial and residential property owners to turn under-utilized or vacant areas into passive income opportunities. For users, these self-storage solutions are priced approximately 40% to 50% lower than traditional storage facilities.
“With a roster of investors and advisors hailing from the world’s largest marketplace operators, including Uber, Airbnb, DoorDash and StockX, Neighbor will use this sizable investment to rapidly expand its nationwide network of hosts and renters,” said Joseph Woodbury, CEO and co-founder of Neighbor. “Storing your personal goods in someone else’s space is rooted in trust, and we’re proud to have expanded our communities’ trust into tens of millions of square feet in big cities, small towns, suburbs and rural areas across all 50 states.”
In addition to leading the round, Fifth Wall has facilitated opportunities for Neighbor to partner with more than 65 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 10 times in 2020.
The Lehi, Utah-based marketplace will use the investment to expand its brand footprint and user base nationwide.
