Led by Bain Capital, venture capitalists invested another $53 million in LinkedIn, which puts a value on the company of over $1 billion, according to LinkedIn CEO Dan Nye. The $53 million bought the investment group 5 percent of LinkedIn. Overall the company has raised $80 million in financing.
LinkedIn primarily targets business professionals and human resources departments looking to make contacts or hire new employees. It's also a contact place for those looking for jobs too.
Nye added that though there have been talks with large media companies, they decided to continue on as they have been because the company feels there is a lot of upside potential for growth.
What makes LinkedIn unique in the social networking space is it actually has a business model that works, and has been profitable since 2006.
Because it doesn't get anywhere near the coverage of the "sexy" networks, it is largely ignored in the marketplace, even though it probably is the most solid social network on the Web in terms of monetization, which is becoming an increasingly important factor as costs continue to rise.
It is estimated by Nye that the company will generate between $75 million and $100 million in revenue this year.
The company has about 23 million members, and grows by 1 million new members each month. It also says it has the largest network of online professionals in Europe as well.
Some of the major ways they generate revenue is through job advertising, premium subscription services and another subscription service which aids recruiters in managing their hiring through the site.
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