LinkedIn prepares for the long haul, raises $22 million
As it looks like there’s no end in sight to the economic downturn brought on by the Wall Street credit crisis, social network and job site LinkedIn has raised $22.7 million in additional funding. The new money is from previous investor Bessemer Venture Partners, and new investors SAP, Goldman Sachs, and interestingly, McGraw-Hill. McGraw-Hill has a deal with LinkedIn on its BusinessWeek.com property.
LinkedIn last raised money in June from Bain Capital Ventures, Sequoia Capital, Greylock Partners and Bessemer Venture Partners. The total was $53 million for that round. Good timing!
LinkedIn has better prospects at generating revenue than other social networking sites: Since LinkedIn is so focused around members and their jobs, it can sell premium listings and services to companies who are hiring. The company was projected to earn $100 million from those listings this year.
Of course, that’s also a risk in today’s climate. If companies stop hiring, revenue drops. Ditto on advertising, where LinkedIn is readying its own ad network.
Bottom line: these days, it's never a bad time to raise money.
