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Jun 18, 2008

NEWS: LinkedIn Connects To $1 Billion Valuation

LinkedIn Valued at $1 Billion

The professional networking site draws members, attention, investment.

LinkedIn Gets Its $1 Billion Valuation - And $53 Million In Cash

linkedin.gifLinkedIn has finally announced its long-rumored $1 billion valuation, via a fourth round of investment led by Bain Capital. Bain, a new investor for the social network for grownups, lead a $53 million round; previous investors Sequoia, Greylock and Bessemer also kicked in. Last fall, when News Corp./LinkedIn rumors were floating around, CEO Dan Nye said the company would need "a lot more than" a billion to consider a sale.

LinkedIn is supposed to generate $100 millon this year, and breaks down the revenue stream for theNYT:

LinkedIn will get only a quarter of its projected $100 million in revenue this year from ads. (It places ads from companies like Microsoft and Southwest Airlines on profile pages.) Other moneymakers include premium subscriptions, which let users directly contact any user on the site instead of requiring an introduction from another member.

A third source of revenue is recruitment tools that companies can use to find people who may not even be actively looking for new jobs. Companies pay to search for candidates with specific skills, and each day, they get new prospects as people who fit their criteria join LinkedIn.

LinkedIn Connects To $1 Billion Valuation

Four VC firms are betting that LinkedIn, the social network for your business contacts, is worth a cool $1 billion. Bain Capital Ventures, Sequoia Capital, Greylock Partners and Bessemer Venture Partners announced today that they are taking a 5 percent stake in the company for $53 million.

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