Business-networking site LinkedIn announced on Tuesday evening that it had netted $53 million in a Series D funding round led by Bain Capital Ventures and with participation from existing investors Sequoia Capital, Greylock Partners, and Bessemer Ventures. CEO Dan Nye wrote in a blog post that this values the company at a smidgen more than $1 billion.
that the company was aiming for a billion-dollar valuation on a new funding round, rather than seeking a buyer. Previously, the company had raised $27 million. Chairman and co-founder Reid Hoffman has said that unless an ideal buyer pops up.
Why so much money? Well, LinkedIn is more profitable than most of the social-networking fray. The site currently has 23 million members, small compared with Facebook or MySpace. But its white-collar focus--billionaire Bill Gates is--means that the people using the site likely aren't going to be college students scrounging for pizza money. That lets LinkedIn rake in premium advertisers and charge quite a bit for them--reportedly $75 per thousand impressions.
And, according to Web metrics firms. LinkedIn has also continued to launch new features in the past year, like customized news and developer platform widgets.