LinkedIn has filed to trade on the public market Thursday seeking to raise up to $175 million. Since its inception in 2003, LinkedIn has grown to a profitable company that has sales of $161.4 million in the first nine months of 2010.


LinkedIn, one of the oldest social networks focused on business professionals, has filed documents with the U.S. Securities and Exchange Commission (SEC) to trade on the public market, seeking to raise up to $175 million. It is a hotly anticipated public offering and with good reason. The SEC filing contains several gems, such as the fact that LinkedIn’s personalized recommendation features typically involves the processing of over 75 terabytes per day. Since its inception in 2003, Mountain View, Calif.-based LinkedIn has grown to a company that has sales of $161.4 million in the first nine months of 2010 and profits of $10 million for the same time period, according to the S-1 filed with the SEC.

While LinkedIn’s offering won’t quench the demand for IPOs from companies such as Facebook or Zynga, the fact that it’s hitting the market first could not only help set expectations, and eventually valuations, for other hot startups, but also likely make it a stronger candidate because of its focus on business as opposed to consumer networking.

Sure, the company has its competitors and detractors in a market cluttered with social networks both personal and professional, but the timing is also auspicious since hiring appears to be picking up. According to a national survey of chief financial officers by Bank of America, 47 percent of companies with revenue between $25 million and $2 billion plan to hire in 2011. Currently, LinkedIn is making 41 percent of its revenue from its “hiring solutions” business that helps recruiters connect with the best candidates.

The company, can use its offering to acquire companies to round-out its business oriented offerings. LinkedIn — which was started by Reid Hoffman, widely recognized as the dean of social networking — earlier this week acquired CardMunch, a little start-up that allows you to take snapshots of business cards and translates them into electronic address cards.

You’re subscribed! If you like, you can update your settings

  1. Zynga’s Big Gamble: Going Public Before Facebook Does: Tech News and Analysis « Monday, February 14, 2011

    [...] speculation about a potential stock market flotation, not least because other outfits such as LinkedIn and Pandora are doing the same. But until the relationship between Zynga and Facebook is clearer, [...]

  2. The Solar Social Network: Evangelists Required: Cleantech News and Analysis « Sunday, February 27, 2011

    [...] recently hired a new chief marketing officer, Patrick Crane, who hailed from LinkedIn where he was vice president of marketing. In an interview last week Crane told us that he plans to [...]

  3. Will Social News Make People Use LinkedIn More Often?: Tech News and Analysis « Thursday, March 10, 2011

    [...] its latest attempt to build social-networking features into its business, LinkedIn, which has filed to go public, today launched a news recommendation service called LinkedIn Today that it hopes will function [...]

  4. It’s No Joke. IPOs Are Back, Baby: Tech News and Analysis « Friday, April 1, 2011

    [...] at or above their offering prices as of March 31, 2011. That’s a good sign for Pandora, LinkedIn, Kayak, Boingo and Fusion-IO, which have all filed to go public, as it means they may actually make [...]

  5. LinkedIn and Facebook: Personal Vs. Professional in the Identity Wars | Facebook News – Social Media News – Facebook Info Wednesday, April 6, 2011

    [...] wrong with taking inspiration from other sites and services, of course especially when you are in the process of going public, as LinkedIn is, and trying to add as much value as you can to your business. Social networking is [...]

Comments have been disabled for this post