Neighbor Closes Series A Investment, Well-Positioned to Bring More Sustainable, High-Quality Consumer Offerings to Fast-Growing Outdoor Furniture Category

Rhea-AI Summary

Neighbor, a Phoenix-based outdoor furniture brand, has closed a Series A funding round led by Strand Equity. The capital will support new product development, team growth, and marketing efforts. Founded in 2020 by veterans of Tuft and Needle, Neighbor aims to disrupt the outdoor furniture market with modern designs and sustainable materials. The company plans to expand its product line, focusing on customer experience and profitability. This funding signifies confidence from investors in Neighbor's innovative approach and growth potential in a booming outdoor furniture industry.

Positive

• Closed Series A funding round, enhancing financial resources.
• Focus on sustainable materials, including FSC certified teak and recycled products.
• Plans for product line expansion, including the Haven collection.
• Strong e-commerce partnerships with brands like Crate & Barrel.
• Experienced leadership team with a proven track record.

Negative

• None.

Premium Outdoor Furniture Brand Disrupts the Industry with Modern Designs, Distinctive Customer Service and Strategic Distribution Partners

PHOENIX--(BUSINESS WIRE)-- Phoenix-based outdoor furniture brand, Neighbor, announces today the closing of a Series A funding round from Strand Equity (“Strand”). The funding round will support new product development, team expansion, and marketing initiatives. The multi-billion-dollar outdoor furniture industry has grown significantly with increased consumer willingness to invest in quality pieces while spending more time at home, as proven evident throughout the pandemic. Neighbor identified the opportunity to bring a modern approach to the comfort of outdoor living with thoughtfully chosen, sustainable materials and timeless designs.

Founded in 2020 by Tuft and Needle veterans, Nick Arambula, Mike Fretto, and Chris Lee, the expert group sought to bring a unique perspective of sophistication, design and distinctive customer service to the outdoor furniture category by leveraging their success as executives at Tuft and Needle, one of the nation’s leading direct-to-consumer sleep product companies and the original disruptor in that market. Nick, Mike and Chris recognized a similar opportunity to disrupt the highly fragmented outdoor furniture category in the same manner Tuft and Needle was able to scale profitably. Within the first year, Neighbor grew rapidly, leaning on simple principles of profitability, manageable scale, and partnership, securing e-commerce distribution partners like Crate & Barrel. With no intention to slow down, Neighbor’s future plans include expanding their highly sought-after Haven collection, creating new, one-of-a-kind outdoor collections, and the extension into more outdoor goods in 2023.

What’s unique about Neighbor outdoor furniture goes beyond premium materials and modern style. Taking an indoor approach to outdoor furniture, the pieces are built with details like weather-proof hardware, textured, easy to clean fabrics, and patent-pending modularity. This offers customers the option to expand and re-arrange their lounge setups as their families and homes change. Neighbor is also committed to sustainability practices such as the use of Forest Stewardship Council (“FSC”) certified teak wood, and lumber from recycled milk jugs in partnership with Polywood. With the recent closing of their funding round, Neighbor will continue providing high-quality outdoor furniture while respecting the planet and environment.

“We’re incredibly excited to partner with Strand Equity and bring them along on our journey to build Neighbor,” said Nick Arambula, CEO of Neighbor. “It was evident from our first conversation that they are enthusiastic about our approach to brand and design, but more importantly, appreciate our desire to build a profitable business rooted in creating an impeccable customer experience.”

"Neighbor is leading the charge in the outdoor furniture industry by providing quality and aesthetically driven outdoor decor options as consumers are investing extensively in their outdoor spaces," said Kevin Chen, Partner at Strand Equity. "Nick, Mike and Chris are industry veterans and bring complementary skill sets that will enable Neighbor to take advantage of the unique market opportunity that lies ahead of them. We were impressed by the team’s track record and vision of building an enduring brand that is both high-growth and profitable, qualities we find increasingly rare in today’s ‘growth-at-all-costs’ environment."

For more information on Neighbor and their assortment of products, please visit www.hineighbor.com.

ABOUT NEIGHBOR

Founded in 2020 by Nick Arambula, Mike Fretto, and Chris Lee, Neighbor aims to create a seamless transition to underutilized square footage outdoors with furniture that's designed with indoor sophistication and crafted to withstand the forces of nature. Their signature collection is made of sustainably harvested solid teak wood, weather-resistant and fast-drying foam cushions, and life-proof Sunbrella® upholstery that will not fade. Neighbor's furniture is designed to fit any space; its modular system enables any configuration. For more information, visit www.hineighbor.com.

ABOUT STRAND EQUITY

Strand Equity is a Los Angeles-based growth equity firm investing in the next generation of iconic consumer brands and services. Strand is led by a team of experienced and successful investors and entrepreneurs. With a permanent capital base, Strand maintains a flexible approach to structure and partnership, enabling dynamic entrepreneurs and management teams to accelerate growth and build durable businesses. Current and realized investments include Youth To The People, Oatly, Studio McGee, Real Good Foods, Bai Brands, Diggs, HUM Nutrition and Monos, among others. For more information, visit https://strandequity.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220322005483/en/

Alicia O'Connell

strandequity@konnectagency.com

Source: Neighbor

FAQ

What funding round did Neighbor recently close?

Neighbor closed a Series A funding round led by Strand Equity.

What will the funding be used for?

The funding will support new product development, team expansion, and marketing initiatives.

Who are the founders of Neighbor?

The founders are Nick Arambula, Mike Fretto, and Chris Lee, veterans of Tuft and Needle.

What is Neighbor's unique selling proposition?

Neighbor focuses on modern designs and sustainable materials in outdoor furniture.

Which e-commerce partners does Neighbor have?

Neighbor has secured partnerships with e-commerce distributors like Crate & Barrel.