venn, a social networking and services platform for hyperlocal neighborhood groups, raises $60m

The Rise of Hyperlocal Networking: Venn Secures $60 Million in Funding

Numerous technology companies, including Facebook and Nextdoor, have prioritized the development of community and neighborhood-focused platforms. Their aim is to foster connections among individuals and subsequently deliver services tailored to their specific locales. Today, Venn, a startup pioneering a novel approach to this concept, has announced a $60 million growth funding round.

Series B Funding and Company Growth

Venn’s funding round, a Series B, is spearheaded by Group 11, with substantial contributions from Pitango, Hamilton Lane, and Bridges Israel. This investment brings the total funding raised by Venn – distinct from the Los Angeles gaming startup sharing the same name – to $100 million to date.

While Venn is not publicly disclosing its current valuation, CEO Or Bokobza, who co-founded the company alongside Chen Avni, has confirmed that this round represents an increase in valuation. Previously, PitchBook estimated Venn’s valuation at over $400 million during its $40 million funding round led by Pitango in 2019. Further details are being investigated and will be updated as they become available.

Expanding Geographic Reach and User Base

Established in 2017 and co-headquartered in Tel Aviv and New York, Venn currently operates in three key areas: its two headquarters cities (specifically Bushwick, Brooklyn) and Berlin. Kansas City and additional cities are slated to join the network soon.

The platform doesn't reveal its total user count, but reports that each "cell" within Venn typically encompasses approximately 5,000 users and 3,000 apartments.

Venn’s Unique Business Model

Venn’s business model draws inspiration from the concept of a kibbutz, adapting it for a contemporary context. It provides a platform for neighbors to connect, learn about each other, and engage in reciprocal exchange of goods and services.

Furthermore, it facilitates the organization of community events, ranging from children’s playgroups to concerts, yoga classes, and other social gatherings.

The Genesis of Venn: Addressing Community Needs

Bokobza recounts that the idea for Venn originated before the formal establishment of the startup. He and Avni relocated to a previously overlooked neighborhood in Tel Aviv, recognizing a growing influx of like-minded individuals.

They subsequently developed a platform to facilitate communication and community building among these residents, addressing the existing lack of social cohesion.

A Platform Rooted in Human Connection

“There was a remarkable quality to this process,” Bokobza stated. “Eventually, people encouraged us to transform this experience into a platform accessible to all neighborhoods. This realization marked the birth of Venn. We believe that neighborhood connections are more impactful than city-wide ones, and we aimed to create a platform that seamlessly integrated technology with genuine human interaction.”

Strategic Focus on Apartment Communities

While companies like Facebook are expanding their local group offerings, Venn distinguishes itself through its targeted approach. The company concentrates solely on densely populated urban areas with large apartment buildings, establishing partnerships with landlords to connect with their tenants. These agreements form a key component of Venn’s revenue model.

Addressing Anonymity in Apartment Living

This strategy acknowledges a key characteristic of apartment communities: despite close proximity, residents often remain anonymous. Building communities around these multidwelling units addresses this issue.

Landlord Incentives and Value Proposition

Furthermore, it aligns with the growing trend of landlords seeking services to differentiate their properties. Providing access to a hyperlocal community, offering engaging activities, and fostering connections among residents enhances the appeal of urban living, particularly for newcomers.

Community Management and Moderation

These hyperlocal communities are not managed by landlords. Venn employs and compensates “hosts” to administer local sites, curate content, and facilitate discussions. A digital assistant, “Vinny,” assists in moderating and approving posts. Additionally, volunteer hosts contribute to community management.

Increased Relevance in a Changing World

The concept has gained increased relevance in recent times, as individuals prioritize local activities and support smaller businesses in response to social distancing measures and the COVID-19 pandemic.

Reconnecting with the Essence of Neighborhood

“Loneliness was a prevalent issue even before COVID-19. Over the past three decades, it has become easier to connect with strangers globally than with our immediate neighbors. We’ve lost the simple joys of knowing our neighbors and being recognized in our local shops. We’ve become disconnected from the fundamental and vital aspect of life: the concept of ‘Neighborhood.’ Venn was created to address this problem,” Bokobza explained.

Investor Confidence and Future Outlook

Group 11, a venture capital firm with a portfolio of Israeli-founded startups, recognizes the unique potential of Venn. They believe the platform not only presents a compelling business opportunity but also contributes to a greater social good.

“While data supports the human need for connection, Venn’s results are undeniable. People desire communities where they feel a sense of belonging, and Venn has successfully achieved this through its technology, expertise, and experiences,” stated Dovi Frances, managing partner at Group 11. “We are investing in people and are proud to lead this round, supporting Venn’s mission.”