Yahoo Tech reports social networking site LinkedIn has raised an additional $22.7 million to insulate the company from the economic storm and provide more financial flexibility. Not bad considering many companies are having problems to get funding these days due to the credit crunch.
The investment announced Thursday was made by one of LinkedIn's long-time backers, Bessemer Venture Partners, and three newcomers — the venture arm of business software maker SAP AG, banker Goldman Sachs Group Inc. and The McGraw-Hill Companies Inc., which publishes Business Week.
The deal values privately held LinkedIn at slightly more than $1 billion, the same appraisal assigned the Mountain View-based company when it raised $53 million in June.
LinkedIn hasn't drawn on any of that money yet, but still thought it was prudent to have more money in the bank as the economy slumps amid a credit crunch, said Dan Nye, LinkedIn's chief executive officer. He also said LinkedIn wanted the extra cash in case an enticing acquisition opportunity crops up.