The Origin Story
In 2002, Reid Hoffman, a former executive at PayPal, conceived the idea for a business-oriented social networking site. He recruited LinkedIn co-founder Konstantin Guericke, who he worked with at PayPal, and together they launched LinkedIn in May 2003.
The site was one of the first social networks designed specifically for business professionals. The goal was to allow members to create a digital resume, connect with colleagues, search for jobs, and establish new business relationships. In the early days, LinkedIn focused on growing its user base rapidly and improving site functionality.
Key Milestones from LinkedIn’s Early Days
2003 | LinkedIn is founded and launches its website |
2004 | LinkedIn reaches 1 million members |
2005 | The company raises $10 million in funding from top VC firms like Sequoia Capital and Greylock Partners |
2006 | LinkedIn launches premium job listings and corporate solutions for recruiters |
2008 | Membership grows to over 20 million professionals |
In the early years, LinkedIn focused on rolling out new site features, establishing a sizable user base, and generating revenue through job listings, premium subscriptions, and corporate recruiting solutions.
Growth and Expansion
After reaching critical mass, LinkedIn began a period of rapid growth and international expansion.
Growth in Membership
In 2011, LinkedIn achieved 100 million members worldwide. The professional network continued growing at a fast rate:
2011 | 100 million members |
2013 | 225 million members |
2015 | 347 million members |
2017 | 470 million members |
This membership growth was fueled by increased adoption of social media and more professionals using LinkedIn to network, find jobs, recruit talent, and build their personal brand.
International Expansion
Alongside membership growth, LinkedIn rapidly expanded into international markets:
- In 2008, LinkedIn launched localized sites in Australia, Canada, France, and the UK
- By 2011, a version of LinkedIn was available in 6 languages and across 200 countries
- In 2014, LinkedIn opened an office in China to establish a stronger presence there
- Today LinkedIn is available in 24 languages
This global expansion significantly increased LinkedIn’s member base and strengthened its position as the world’s largest professional network.
Diversification of Products and Services
To leverage its growing user base, LinkedIn developed a wider range of offerings:
- Premium subscriptions with additional features for individuals and sales professionals
- Recruiting solutions for corporate hiring
- Sponsored content advertising opportunities
- Online learning courses through Lynda.com
- Premium business and employment data offered through LinkedIn insights
These new product lines opened up additional revenue streams beyond member subscriptions.
Becoming a Public Company
LinkedIn filed for an initial public offering (IPO) in 2011. On May 19, 2011, LinkedIn began trading on the NYSE under the ticker symbol LNKD.
Shares were priced at $45 per share for the IPO. However, strong investor enthusiasm drove LNKD over $120 per share on the first day of trading. This nearly tripled LinkedIn’s valuation and made the IPO a huge success.
Being a publicly traded company provided LinkedIn access to more capital for expansion. The company used this funding to:
- Accelerate product development
- Invest in acquisitions such as Lynda.com and Newsle
- Expand into new international markets
Going public also increased LinkedIn’s visibility and brand awareness globally. Membership grew steadily in the years after becoming a public company:
At IPO in 2011 | 100 million members |
2013 | 225 million members |
2015 | 347 million members |
Acquisition by Microsoft
After more than a decade as an independent company, LinkedIn agreed to an acquisition offer from Microsoft in 2016. The deal was valued at $26.2 billion, making it one of the largest tech acquisitions to date.
Microsoft had several motivations for acquiring LinkedIn:
- Gain access to LinkedIn’s 433 million members for Microsoft’s cloud and Office products
- Integrate LinkedIn’s social data into Microsoft services like Outlook and Skype
- Expand LinkedIn’s enterprise and analytics offerings through Microsoft’s global salesforce
- Prevent LinkedIn from being acquired by a competitor like Google or Facebook
For LinkedIn, the huge valuation represented a major win for early investors and shareholders. Being acquired by Microsoft also provided greater resources for expanding LinkedIn’s member base, product lines, and global footprint.
Since the acquisition closed in December 2016, Microsoft has aimed to integrate LinkedIn more deeply into its product ecosystem:
- Microsoft enabled LinkedIn profile data to be accessed directly within Office programs
- The newsfeed from LinkedIn is now integrated into the Windows 10 taskbar
- LinkedIn Learning video courses can be viewed directly in Microsoft Teams
Under Microsoft, LinkedIn surpassed 600 million members in 2019 and continues to see strong engagement. The acquisition has provided stability and resources to maintain LinkedIn’s dominance as the world’s premier social network for business.
Conclusion
LinkedIn has come a long way since its founding in 2002. It has grown from a small Silicon Valley start-up into the world’s largest professional networking platform with over 600 million users globally.
Key factors in LinkedIn’s growth included network effects driven by rapid member acquisition, international expansion, diversification of product offerings, the visibility and funding from becoming a public company, and the increased resources after being acquired by Microsoft.
Going forward, LinkedIn is well-positioned to continue growing its membership base, especially in emerging markets like Asia and Africa. With Microsoft’s backing and integration, LinkedIn is also likely to roll out new features and services leveraging Microsoft’s strengths in cloud computing, data analytics, and enterprise software. Overall, LinkedIn has established a strong foundation and trajectory to maintain its leadership in the professional networking space in the years ahead.