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Online business network LinkedIn raises more money

October 22, 2008 | 10:16 pm

LinkedIn CEO Dan NyeLinkedIn has raised an additional $22.7 million to pack onto its growing cash reserve, giving it more flexibility and security in the troubled economy.

The investment in the popular online business network came from long-time investor Bessemer Venture Partners and three new partners, business software maker SAP, banker Goldman Sachs and publisher McGraw Hill.

The deal values the privately held company at slightly more than $1 billion, the same as when LinkedIn raised $53 million in June.

"This definitely strengthens our balance sheet and gives us some friends in important places," said LinkedIn Chief Executive Dan Nye.

At a time when much of Silicon Valley is hunkering down to ride out the economic storm, the large, untapped cash reserves give LinkedIn peace of mind and the ability to make acquisitions, Nye said.

"It's an interesting time because the network is booming right now," Nye said.

LinkedIn, which has 370 employees, is adding nearly 2 million members a month. And it recently hit 30 million members.

"Clearly activity is rising. People are reaching out. The density of the graph is growing," he said.

-- Jessica Guynn

Photo: LinkedIn CEO Dan Nye. Credit: Dave Getzschman / For The Times