LinkedIn has raised $53 million from Bain Capital Ventures giving the company a $1 billion valuation. The company has experienced massive growth over the past year. 319 percent to be exact according to statistics released in April. While the company is a fraction of the size of Facebook, the company has an extremely targeted user base with high average household incomes and a higher median age then most of the large social networks.
A good analogy would be that LinkedIn is the Wall Street Journal of social networks. There’s no clear path for LinkedIn from here but there is a lot of buzz surrounding their soon to be released platform which is expected to attract the attention of premium brands. LinkedIn has now raised a total of $80 million. Don’t expect them to start selling virtual goods anytime soon though.
LinkedIn appears to be focused on building out their rapidly expanding user base. There had been substantial speculation that the company would get acquired by News Corp to integrate into the Wall Street Journal. Based on the recent round of financing any partnership between the two companies will most likely be delayed.
The social networking space continues to heat up with new rounds of financing by the industry leaders. It will be interesting to see how this all transforms over the next 6 to 12 months as the focus shifts to cross-platform communication and integration. Oh and lets not forget monetization.