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LinkedIn announced a pair of $53million round of funding that had all its current investors along with a new investor, Bain Capital. With this deal the company is now over $1 billion worth. LinkedIn has earned revenues at over $100 million a year with 23 million users.
The plans are to invest the part of the funding in acquiring smaller firms that can help the sharing of information for its users in a much more effective manner and bring forward newer services. The credit largely goes to LinkedIn’s founder, chairman and largest shareholder, Reid Hoffman, as most of the investors prop out of his own personal network. With so much influence over the network, LinkedIn is often termed in his brain.
Sequoia Capital partner Mark Kvamme said:
“That’s what we really liked about LinkedIn: He basically built it for himself. He saw an opportunity to create a tool to build your network in a more effective way. Most great Internet companies are built by people for themselves not for fabulous economic gain.”
The company’s expansion and success is also credited to the CEO, Dan Nye a Harvard Business School Graduate, who since joining LinkedIn in Feb 2007, has added top notch executives and raised the employees from 60 to 310. The current deal has the company tapping the air with plans to roll out more corporate services and explore acquisitions while increasing its users, customers and employees. Dan Nye added:
“We have a strong balance sheet and a strong business model and now we have the luxury of being able to focus on building a great company.
The company has attracted advertisers, owing to its popularity (ranked the fourth most popular social network), with 7.7 million U.S visitors
