LinkedIn’s New Round

MarketWatch’s Bambi Francisco has a revealing article on a new round of financing LinkedIn has raised.  After the OpenBC/Xing IPO, the $250m figure is not surprising.  However, Bambi has dug deep to bring some numbers to the surface at LinkedIn:

Today, Linkedin has 70 employees and estimates to be a year behind
popular social network Facebook in generating sales, according to
Rabois. That means Linkedin is set to generate between $45 million and
$60 million next year. Linkedin CEO Reid Hoffman boldly predicts the
company will hit $100 million in 2008.

Today, it has 8.5 million members, with 30% to 40% active users. It’s
the No. 23 top social network site, with 1.5 million unique visitors
and 36 million pageviews, according to Nielsen//NetRatings.
Linkedin has three revenue streams today —
sponsorships, subscriptions to scour and contact Linkedin’s 8.5 million
membership base, and job listings. About 45% of the revenue comes from
subscriptions, according to Rabois. Corporations, such as Microsoft and
Salesforce, pay between $10,000 and $100,000 annually to let their
internal recruiting staff use Linkedin’s database for potential hires.

Individuals also pay $20 per month to
be able to contact people outside their network, but those paying
subscribers are 1% to 2% of the members who enjoy the service for free.

I have been receiving LinkedIn invitations from Europe lately, so it looks like there’s a big push there.  I think we’ll continue to hear about growth at LinkedIn, and this round will seem relatively cheap soon.


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