18 June 2008 |

LinkedIn gets the Cash-In

Linked_in

Networking site for professionals LinkedIn has stamped confidence in online industries today by attracting new investment to the tune of $53m. The business overall is valued at over $1bn.

At an uncertain economic time, this is a reassuring statement that there is sustained confidence in online industries. Perhaps this is due to the fact that LinkedIn manages to monetise their site in ways that other sites don’t or can’t. Not only does the professional networkers site run the typical online advertising model, but they also charge a subscription for employers and individuals alike to have an enhanced membership of the site.

LinkedIn has attracted investors from the likes of Sequoia Capital, Bessemer Venture Partners and Greylock Partners, as well as Bain Capital Ventures, giving investors a 5% stake in the company. This is the latest in 4 rounds of fundraising throughout the company’s 5 years, totaling an investment of $80m.

It seems that the investors are attracted towards the sites 23 million strong user base, and reports that growth figures are as high as 1.2 million new additions every month, as well as the differentiation that the site offers – being a specialist for recruitment.

New investment such as this at this difficult time suggests that there are an array of firms who remain committed to investment in developing companies – and not just online industries, but social networking companies. Does this suggest that they believe there is room in the market beside the dominant firms such as Facebook for a specialist to prosper?

The interest lies in how LinkedIn invest their new capital, and the routes they choose to explore in order to maintain the confidence they have gained in the business they have carved into quite a significant niche.

Team Tamar

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  • http://www.wikinomics.com/blog/index.php/2008/06/18/linkedin-to-target-new-audience-your-boss/ Brittany Creamer

    With the deluge of LinkedIn blog buzz today, I’m surprised more people did not pay attention to LinkedIn’s upcoming product launches–the new and innovative ways of monetizing their community you blogged about. Directing their attention away from the individual professional, LinkedIn will soon turn to companies to fill their coffers with new products like Company Groups, a service that will group all employees of a company on the network into private forums to collaborate on work-related tasks. Companies will have access to their employees’ networking activities. Will LinkedIn members accept this dramatic increase in transparency than they originally bargained for? Or is there another Facebook Beacon disaster on the horizon?

  • http://www.wikinomics.com/blog/index.php/2008/06/18/linkedin-to-target-new-audience-your-boss/ Brittany Creamer

    With the deluge of LinkedIn blog buzz today, I’m surprised more people did not pay attention to LinkedIn’s upcoming product launches–the new and innovative ways of monetizing their community you blogged about. Directing their attention away from the individual professional, LinkedIn will soon turn to companies to fill their coffers with new products like Company Groups, a service that will group all employees of a company on the network into private forums to collaborate on work-related tasks. Companies will have access to their employees’ networking activities. Will LinkedIn members accept this dramatic increase in transparency than they originally bargained for? Or is there another Facebook Beacon disaster on the horizon?