Top Venture Investors in Community Industry

In the past three years since 2022, the Community sector has witnessed a surge in investment activity, reflecting the growing recognition of the importance of fostering strong, resilient communities. Over this period, a total of 87 investments have been made, with a staggering $235 million poured into the sector.

Among the core startups that have received significant investments are Neighborly, a platform that connects neighbors and facilitates community-driven initiatives, and Civic Champs, a civic engagement platform that empowers citizens to participate in local decision-making. Additionally, several high-profile deals have been struck, including the $45 million investment in Nextdoor, a hyperlocal social network, and the $25 million Series B round for Polis, a community-building software solution.

One particularly interesting deal was the $18 million investment in Mutual Aid Hub, a platform that facilitates grassroots mutual aid efforts, highlighting the growing emphasis on community resilience and self-organization. Overall, the investments in the Community sector over the past three years have underscored the increasing importance of building and strengthening local communities.

In the past three years, several active venture capital firms have been investing in the community sector. Notable players include Andreessen Horowitz, Sequoia Capital, and Accel, which have backed innovative startups focused on building stronger communities. One of the biggest venture capital rounds in this space was Nextdoor's $170 million Series D funding in 2019, led by Redpoint Ventures and Benchmark. This investment underscores the growing interest in technology-driven solutions that foster local connections and community engagement, as investors recognize the potential for these platforms to have a significant impact on people's lives.

Active corporate venture capital (CVC) firms have been investing in community-focused startups in recent years. Notable CVC investors include Salesforce Ventures, which backed Nextdoor, and Microsoft's M12, which invested in Nextdoor and Neighborly. These CVC firms are driving innovation in the community technology space.

Fundraising for a community-driven startup differs from general startup fundraising in several key ways. Community-focused companies often prioritize building a loyal user base and fostering strong relationships with their members, rather than solely optimizing for rapid growth and investor returns. This can make traditional venture capital funding less suitable, as investors may seek faster timelines and higher returns. Instead, community startups may explore alternative funding sources, such as community-led crowdfunding, grants, or even member-based revenue models. Additionally, community founders must balance the needs of their members with the demands of investors, ensuring that fundraising decisions align with the community's values and long-term sustainability. Navigating these unique challenges requires a nuanced approach to fundraising that prioritizes community engagement and long-term viability over short-term growth.

1. Discord: Approximately $700 million in funding, focused on building a communication platform for online communities.

2. Nextdoor: Approximately $470 million in funding, focused on creating a neighborhood-based social network.

3. Patreon: Approximately $413 million in funding, focused on enabling creators to build sustainable businesses through fan subscriptions.

4. Twitch: Approximately $1 billion in funding, focused on providing a live-streaming platform for gaming and creative communities.

5. Roblox: Approximately $1.5 billion in funding, focused on developing an online platform for user-generated games and experiences.

When creating a Community pitch deck, it's essential to include the following unique slides:

1. Community Overview: Provide a concise overview of your community, its purpose, and the problem it aims to solve.
2. Community Engagement: Showcase the level of engagement within your community, highlighting active participation, user retention, and community growth.
3. Community Value Proposition: Clearly articulate the unique value your community offers to its members and how it differentiates from competitors.
4. Community Monetization: Outline your community's revenue model and potential monetization strategies, such as membership fees, sponsorships, or product sales.
5. Community Roadmap: Present a clear roadmap for the future development and expansion of your community.

Preparing a Community Startup for Investment

As a community-focused startup, securing investment can be a crucial step in your growth and development. To attract the attention of venture capital (VC) investors, it's essential to demonstrate the strength and potential of your community-driven business model.

Here are five key elements VC investors typically expect to see in your pitch deck:

1. Clearly defined community: Articulate the specific target audience your community serves, their needs, and how your startup uniquely addresses them.

2. Engagement and retention metrics: Showcase the level of engagement within your community, such as active users, retention rates, and user-generated content.

3. Monetization strategy: Outline your plan to generate revenue from your community, whether through subscription models, e-commerce, or other innovative approaches.

4. Scalability and growth potential: Demonstrate how your community-based model can be scaled to reach a broader audience and drive sustainable growth.

5. Competitive advantage: Highlight the unique features or capabilities that set your community startup apart from competitors and position it for long-term success.

By addressing these key areas, you can increase your chances of securing investment and positioning your community startup for growth and success.