A billion-dollar valuation for LinkedIn?
On Monday, reports surfaced that business social network LinkedIn was likely looking to raise a round of venture capital (rather than find a corporate parent). Now, TechCrunch has reported that investment bank Allen & Co. is hoping to help LinkedIn pull in that funding at a $1 billion valuation.
Spearheading the campaign is Dave Wehner, managing director of the Bay Area bank, who was reportedly a big part of Bebo’s $850 million sale to AOL.
Why $1 billion? Well, LinkedIn says that its target demographic has meant it can pull in some pretty lucrative ad revenue, avoiding the “ad trap” that has hurt monetization efforts on the part of more general-focused social networks. The average user of LinkedIn (there are 20 million total) is reportedly 41 years old and makes about $110,000 annually.
That’s made it possible for the social network to charge advertisers $75 per thousand impressions, which is almost unheard of in the social-media world.
Whether that’s worth a full billion, well, we’ll have to find out.
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A billion-dollar valuation for LinkedIn?
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