LinkedIn prepares for expansion to Europe
The developers of the famous social network LinkedIn received funding in the amount of $ 12.8 million from venture capital funds Bessemer Venture Partners and the European Founders Fund (EFF). New partners will help LinkedIn open branches in Europe and withstand tough competition with the German social network Xing (formerly OpenBC). At the moment, LinkedIn is number one in Europe, and Xing is number one in Germany and is rapidly expanding.
As you know, the social network LinkedIn is quite popular among Russian-speaking users, who make up almost the most extensive contingent there after English-speaking. At least, it was like this before the appearance of the Russian clone called “MyKrug” .
It can be assumed that LinkedIn owners will sooner or later want to capitalize on their presence in Russia. First you need to develop a Russian version of the site.
Reid Hoffman, director of LinkedIn Corp., said that venture investors came in handy. The fact is that the business reached profitability in March 2006 and is now ripe for expansion. Venture investors, as it should be, help a startup not only with money, but also with business assistance. So, the funds of Bessemer and EFF were specially chosen because they have experience in opening foreign branches of Internet companies. For example, Bessemer previously helped Skype startup, and EFF launched the German branch of eBay.
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In general, LinkedIn received venture financing twice: $ 4.7 million in 2003 and $ 10 million in 2004. In August 2005, the company introduced paid services on the site, and in March 2006 announced that it had become profitable. At the time of the last round of investments two years ago, startup co-founder Konstantin Guericke (Konstantin Guericke) called the business model LinkedIn "developing." He said that the business plan involves copying the eBay model, that is, making a profit at the expense of a small number of the most active users. For this model to work, you need to maximize the user base. For this reason, and open branches in Europe.
To date, 9 million users from North America, Europe and Asia are registered on the LinkedIn network. The site has more than 350 corporate clients, and the number of registrations is growing by 100 thousand per week.
Standard LinkedIn accounts are free, and profits come from additional services such as InMail mailings, advertising on the site, job offers, advanced search, etc. The company plans to increase revenues to $ 100 million by 2008, that is, ten times compared with 2006.
As you know, the social network LinkedIn is quite popular among Russian-speaking users, who make up almost the most extensive contingent there after English-speaking. At least, it was like this before the appearance of the Russian clone called “MyKrug” .
It can be assumed that LinkedIn owners will sooner or later want to capitalize on their presence in Russia. First you need to develop a Russian version of the site.
Reid Hoffman, director of LinkedIn Corp., said that venture investors came in handy. The fact is that the business reached profitability in March 2006 and is now ripe for expansion. Venture investors, as it should be, help a startup not only with money, but also with business assistance. So, the funds of Bessemer and EFF were specially chosen because they have experience in opening foreign branches of Internet companies. For example, Bessemer previously helped Skype startup, and EFF launched the German branch of eBay.
')
In general, LinkedIn received venture financing twice: $ 4.7 million in 2003 and $ 10 million in 2004. In August 2005, the company introduced paid services on the site, and in March 2006 announced that it had become profitable. At the time of the last round of investments two years ago, startup co-founder Konstantin Guericke (Konstantin Guericke) called the business model LinkedIn "developing." He said that the business plan involves copying the eBay model, that is, making a profit at the expense of a small number of the most active users. For this model to work, you need to maximize the user base. For this reason, and open branches in Europe.
To date, 9 million users from North America, Europe and Asia are registered on the LinkedIn network. The site has more than 350 corporate clients, and the number of registrations is growing by 100 thousand per week.
Standard LinkedIn accounts are free, and profits come from additional services such as InMail mailings, advertising on the site, job offers, advanced search, etc. The company plans to increase revenues to $ 100 million by 2008, that is, ten times compared with 2006.
Source: https://habr.com/ru/post/2660/
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