Blog Post

LinkedIn Going For Hydrogen Winter: Raises Another $22.7 Million From McGraw-Hill, Among Others

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Forget the nuclear winter that Marc Andreessen talked about. The new thing is the Hydrogen bomb winter. And that’s what LinkedIn is preparing for. It has raised another $22.7 million in additional funding, with the stated purpose of getting more monetary cushion to ride through the economic downturn, and pick up some other strategic assets on the cheap if they come along. The new money is from previous investor Bessemer Venture Partners, and new investors SAP, Goldman Sachs, and interestingly, McGraw-Hill (NYSE: MHP), which has an extensive deal with LinkedIn on, and supposedly one of the potential acquirers for the company (though not affordable at the current valuations). It announced a big $53 million round earlier in June, from Bain Capital Ventures, Sequoia Capital, Greylock Partners and Bessemer. The valuation of this additional money, the company gleefully points out, is a bit above $1 billion, same as for the previous round. This brings the total money raised above $100 million. Company CEO Dan Nye says that this money raised about a month ago, right before the current financial crisis hit.

A big part of its revenues (projected to touch $100 million this year, but that could possibly be revised downward) is premium jobs listings and services to companies who are hiring, so that is bound to get affected in a big way with a prolonged downturn. Also, the company was preparing to launch its ad network, but that may not look that lucrative in this economy. In other words, more money now helps. For the strategic fit with the three new investors, see this blog post, which explains the on-paper fit well.

Pic courtesy: tychay .

2 Responses to “LinkedIn Going For Hydrogen Winter: Raises Another $22.7 Million From McGraw-Hill, Among Others”

  1. Good for linkedin to bring in some more money while they can. Although I wonder what the use of proceeds is going to be – same as usual or acquiring some competitors (e.g. XING)? And for our friends at Paidcontent – first "nuclear" (I know that was Marc Andreesen), now hydrogen – that's just plain dumb. How about old fashioned "tough times" or "recession"?

  2. digital bear

    It seems less like them preparing for a nuclear winter than their investors looking to bring a bomb to their LPs and shareholders. LinkedIn hasn't been able to effectively go contextual, vertical, get over the lingering site latency, maintain a consistent executive suite or deploy Web2.0 tools– haven't these investors been sold a bill of goods, again?