Phoenix-based outdoor furniture brand, Neighbor, announces the closing of a Series A funding round from Strand Equity. 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 and All Modern. 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.”
