Business / Corporate Finance
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Autor: people 22 June 2011
Words: 288 | Pages: 2
Example is LinkedIn Corp.that started as social networking site faces competition from Facebook and Myspace. With its launch in 2003, it has been able to register 100 Million users (March 2010). The company mainly is involved in job listings and corporate hiring solutions.
During the initial phases the company secured $4.7 million from Sequoia Capital and $10 million from Greylock. In 2007, it secured $12.8 million funding from Bessemer Venture Partners (Bessemer), the oldest venture capital practice in the United States managing over a billion dollars in venture capital, and European Founders Fund (EFF), Europe’s leading internet investors. The funds, was mainly to support the growing user base, and expansion on global platform. Another reason is the investments in new products and markets.
In 2008, the number of users increased by 360% from 2007, the company also raised $53 million in a venture round from Bain Capital Ventures. During that time the company mainly catered for business and professionals only for networking. The funding was a good booster for the company during the growth phase. “LinkedIn’s strong global growth and solid business model are the foundation of this investment”, said Dan Nye, Chief Executive Officer of LinkedIn. “In this global economy and information age, LinkedIn serves an invaluable purpose. Today’s professionals turn to LinkedIn to find valuable information, opportunities and advice, and to present themselves on the Internet in a credible and professional way.”
These funds helped in created huge revenues in streams in advertising (32%), premium subscription (27%) and increasing hiring solutions (41%). The company has seen the most growth in its Hiring Solutions revenue, jumping to $65.9 million in the nine months ended Sept. 30, 2010 from $23.8 million in the year ago period....
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