LinkedIn Venture Capital Investment Memo from Bessemer Venture Partners -

For many users, LinkedIn is primarily an online resume. There are a few segments of users, however, which are, in fact, starting to “live” on the site. The primary group is executive recruiters. Because of the breadth and quality of LinkedIn’s member base, recruiters are using it to identify, contact and check references on passive job seekers – i.... See more

Although the mainstream business professional does not yet have a compelling reason to spend time on LinkedIn daily, a big focus of the company is to add features to motivate broader regular usage. Recent new feature examples include finding and endorsing service providers such as lawyers and accountants, re-connecting with former colleagues and cl... See more

The company was selling about $50k of subscriptions per week in January and sales grew steadily to about $200k during the last week of November. As with jobs sold on the site, there are no incremental costs associated with each dollar of subscription revenues, which makes for a very attractive business model.