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3 Big Reasons Why LinkedIn Will Survive the Economic Crisis

Oct 24, 2008 | 2 Comments |
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By: Senior staff writer – Easton Ellsworth

The Associated Press reports (and the LinkedIn blog confirms) that LinkedIn.com has raised $22.7 million in investor money to go along with $53 million it secured in June 2008.

Even though LinkedIn has been appraised at approximately $1 billion and now has over $80 million resting in its coffers, we can’t help but wonder, given the meh state of the U.S. and global economies:

Will it be enough?

We think so. Here’s why.

1. 30 million members. In 150 industries, we might add. And the nature of LinkedIn (a social network especially for professionals) means that it won’t have as hard a time getting members to spend money for increased exposure, premium tools, consulting, etc., as non-business-oriented networks like Friendster or MySpace might.

2. Serious investors. (Goldman Sachs, McGraw-Hill, SAP, Bain Capital, etc.) LinkedIn is linked in, so to speak, to the right VCs and investors to make it sturdy in this turbulent time.

3. Rabid growth. Compete shows that LinkedIn’s overall traffic continues to grow like a weed.

Do you think the economic downturn will turn LinkedIn’s future sour? Will business folks flock to it in droves or avoid it like the plague in this troubled time?



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2 Comments »

  • Jim Turner said:

    I wish I had saved a recent email I received from Neilsen Online about their percentage of growth over last year. It was phenomenal growth with other social sites. Tagged.com was another one as well as the usual suspects. One group I was surprised was the Myspace crowd. Their growth was minimal.

  • Jim Turner said:

    If you wait around long enough it finally comes bubbling back to the top. I found the link showing LinkedIn’s growth from last year to now.

    http://www.nielsen-online.com/pr/pr_081022.pdf

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