It's tough to overstate the value of good management when investing in fast-growing companies with large market opportunities. In this Fool Live video clip recorded on Oct. 18, Fool.com contributor Matt Frankel explains to colleagues Danny Vena and John Rosevear why the company's CEO played a big role in his plans to buy shares of social media SPAC merger target Nextdoor.
Matt Frankel: Another reason I really love Nextdoor as an investment is because of who's running the company. Do either of you know the name Sarah Friar?
Danny Vena: I do not.
Frankel: No? She was the CFO of Square (SQ +3.74%) that took the company from a little niche card reader to a big financial ecosystem. Many people say she had more to do with their growth than Jack Dorsey did. She was the rock star CFO who built out the Cash App, her vision was to make the Cash App do everything for people that their banks do. That was her vision, Nextdoor stole her away a couple of years ago to run the business. I was an early investor in Square and watched her progressed through the ranks, and now she is CEO of Nextdoor.
I cannot wait to see what she could do with the war chest of cash she's about to get in the SPAC deal and an untapped potential with a 63 million user base, so that's Nextdoor. Right now, if you want to buy it, the ticker symbol is KVSB, Khosla Ventures Acquisition II (KVSB +0.00%) is the name of the SPAC. They're targeting the fourth quarter, so sometime in the next few months for the deal to close. I will be adding that to my portfolio, I have not yet just because I talked about it too often on here to buy shares, I'm sure you guys have run into similar issues in the past. That's Nextdoor, what do you guys think?
Vena: This sounds like another example of what you were talking about earlier, where you've got some leadership here who has some experience in the area and could potentially really make a difference in this area.
Frankel: Yeah, I can't overemphasize the value of good management in my investment thesis just in general. Sarah Friar, I would probably have bought any company they made her CEO of.
Vena: Wow, that's high praise indeed.
John Rosevear: It is and I agree that when you see a good leadership team with what looks like a good opportunity in front of them, that's instantly, "Oh, I'm interested." That's a big indicator. If you've watched executives move from company to company and you know that they perform and you know that they find opportunities and you know they put cash to good use. Yeah, of course I'm interested.
