SAN FRANCISCO (Reuters) - LinkedIn, an online destination for professional networking, raised $53 million from investors in a fourth round of financing, giving the company an estimated valuation of just over $1 billion, LinkedIn Chief Executive Dan Nye said.Private equity firm Bain Capital's Bain Capital Ventures led the investment round, and LinkedIn's existing investors, venture capital firms Sequoia Capital, Bessemer Venture Partners and Greylock Partners also put in money, the company said.
Jeffrey Glass, Venture Partner at Bain Capital Ventures, said the $1 billion valuation is a "big number if you think about it in absolute terms."
But Bain felt comfortable with its calculation given LinkedIn's popularity and the growth opportunities that lie ahead, Glass said. "We... feel like we'll make a nice set of multiples on our money."
A handful of Web 2.0 start-ups, providing people innovative ways to interact online, have recently secured high valuations.
Source: Reuters
Comments :
A lot of us would find the valuations of Social Networks creeping up while the general market is at a Low. Ever wondered why it is so? In my personal opinion, I feel that social networks will revolutionize the future of Search Technology.
Social Networks have already started making a move from being associated with “products” to being a “technology”. Very soon, We would hear people say, “This product is built using Social Networking Technology”
On a Philosophical note, life is all about who knows who, i.e Personal Networks. Very often we hear people giving their Introduction by qualifying their personal connections. This is exactly what Social Networks have done. In years to come, I expect to see more “focus group” networks than general purpose networks. It’s a space that every youngster should watch out for. Just remember that Mark Zuckerberg founded Facebook while he was still a student at Harvard.
He was a teenager then, and today 4 years later, Facebook is valued at over 15 Billion US Dollars…
On a Philosophical note, life is all about who knows who, i.e Personal Networks. Very often we hear people giving their Introduction by qualifying their personal connections. This is exactly what Social Networks have done. In years to come, I expect to see more “focus group” networks than general purpose networks. It’s a space that every youngster should watch out for. Just remember that Mark Zuckerberg founded Facebook while he was still a student at Harvard.
He was a teenager then, and today 4 years later, Facebook is valued at over 15 Billion US Dollars…
Romit Dasgupta
(Globsyn Business School)
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