Groupon struggled to keep up with its huge growth, losing more than 70 percent in market value after its IPO in 2011.
Besides potential revenue challenges, Nextdoor has some big competitors that are also looking to build social platforms for local communities like Yahoo! Groups,Google Circles and even Facebook. However, Tolia said Nextdoor's focus on privacy distinguishes it from the competition.
"It's not a general purpose platform for friends and family like Facebook. It's not a general purpose platform mailing list like Yahoo! Groups. It's built from the ground up for your neighborhood, and as a result it is the best place for you to connect with your neighbors online."
Nextdoor has raised more than $40 million in funding from key investors Benchmark Capital, Greylock Partners, Shasta Ventures, DAG Ventures, Bezos Expeditions and Google Ventures.
—By CNBC's Erin Barry & Marqui Mapp