LinkedIn Corp., a social networking service for business and professional users, has raised an additional $22.7 million in private capital from new investors Goldman Sachs, McGraw Hill Cos. and SAP Ventures, with previous backer Bessemer Venture Partners also joining the round. The investment, a follow-on to a $53 million Series D
round the company announced in June, is a strong endorsement at a time when technology startups are having a harder time raising money as investors grow more conservative amid the ongoing financial crisis.
"This funding strengthens LinkedIn further, and will help us to continue
creating additional services for professionals to connect and
collaborate more effectively, around the world," says LinkedIn CEO Dan Nye In a post on the company's blog.
The last funding in LinkedIn, which is also backed by Bain Capital Ventures, European Founders Fund, Greylock Partners and Sequoia Capital, this summer valued the company at more than $1 billion. By comparison, LinkedIn's post-money valuation was only $250 million when it drew a $12.8 million Series C round in January 2007, according to Capital IQ.
No question this is a company on a roll. With roughly 27 million registered users and partnerships with media players such as The New York Times and CNBC,
LinkedIn is widening the gap on rival social networks geared to professionals, such as Plaxo Inc. The new money should help LinkedIn, which is profitable, not only weather the economic storms, but perhaps roll up other sites as it seeks to consolidate its lead and expand its offerings. By contrast, with the latest investment LinkedIn has raised nearly $103 million, raising pressure on the company to justify its hefty backing by better monetizing its growing user base.
-- Alain SherterSee June 18 post on LinkedIn's Series D funding from Tech ConfidentialSee Oct. 22 post on LinkedIn's new funding from its corporate blog
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TechCrunch and
The Wall Street Journal
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