Townsquared

Townsquared, founded in 2013 by longtime friends Nipul Patel and Rohit Prakash, emerged from their shared experiences as children of immigrant small business owners. The San Francisco-based firm operated as a private online network designed to connect local business proprietors within the same neighborhood, functioning as a professional equivalent to the residential social network Nextdoor. The platform provided a secure forum for merchants to discuss pertinent local matters, including crime and safety, supplier recommendations, local ordinances, and community event planning.

The company's business model was centered on user growth rather than direct revenue, offering its services free of charge and without on-site advertising. To fund its operations and expansion, Townsquared secured a total of $22.2 million over three funding rounds, with a notable $11.5 million Series B round in August 2016 led by Sierra Ventures and Intuit. This capital facilitated the platform's expansion into more than 500 neighborhoods across cities like San Francisco, New York, and Seattle. In a strategic move to enhance its service offering, Townsquared acquired the messaging platform Voo in March 2017, with the goal of evolving into a comprehensive communication and operations hub for small businesses, akin to a 'Slack for SMBs'.

Co-founder Rohit Prakash brought a unique perspective to the venture, having been a Stanford Neuroscience MD/PhD student before entering the startup world. Nipul Patel contributed a strong background in business strategy and leadership. Despite its growth and strategic acquisitions, the company was ultimately acqui-hired by Gannett, a move signaling that the value was in the team's talent rather than the standalone business. The original service was discontinued, and the founders moved on to new ventures; Prakash co-founded Coast App in 2018, and Patel now serves as SVP of Human Capital at Serent Capital.

Keywords: Townsquared, small business network, Rohit Prakash, Nipul Patel, local business community, private social network, SMB communication, Gannett acquisition, Voo acquisition, Sierra Ventures, Intuit ventures, hyperlocal business, small business collaboration, retail technology, neighborhood commerce, business-to-business network, startup acquihire, San Francisco startup, online business forum, merchant communication platform