Mountain View- based LinkedIn, an online social networking site that connects more than 23 million professionals in 150 countries and 170 industries from around the world, was launched in May 2003. Unlike other online networks, which serve the social lives of the members, LinkedIn basically focuses on business relationships among its users.

LinkedIn is funded by world-class investors including Sequoia Capital, Greylock, the European Founders Fund, Bessemer Venture Partners and Bain Capital Ventures. Recently, the company raised $ 53 million value in the fourth round of funding led by Bain Capital Ventures with participation from other existing investors. And the significant capital infusion has placed the value of the company about $ 1 billion.

It earns money through ads, subscription plans, job listings and other services. The site is very helpful for professionals, who are career- minded and join for the networking than sharing their social lives. Users maintain online resumes, establish links with colleagues and business acquaintances and then expand their networks to the contacts of their contacts. The service also helps them search for experts who can help them solve daily business problems.
 
But, as compared to other social networking sites like Facebook and MySpace, the website keeps a low profile. In this electronic era, the competition is always there in between online sites to look exciting and appealing. However, LinkedIn is not much focused to this aspect. LinkedIn sees the fact that, the average age of a LinkedIn user is 41, the point in life where people are less likely to build their digital identities around dates, parties and photos of revelry.

LinkedIn said it is already profitable and with the huge recent capital infusion, it would make investment in making acquisitions and expand its overseas operations with additional services.

Apart from ads, subscription plans, job listings and various other services, LinkedIn plans to find other sources of revenue. The site will now introduce new services to cater companies, earlier which has only served individual professionals. 

A new product from LinkedIn, ‘Company Groups’ will automatically gather all the LinkedIn users from a company in a group, where they can share and discuss anything.

LinkedIn also plans to add features, like a group calendar, which will allow independent developers to contribute their own programs that will allow employees to collaborate on projects.

This entry was posted on Monday, July 28th, 2008 at 6:16 am and is filed under Venture Capital News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.