LinkedIn’s $10M series B pitch deck

ABOUT

• Raised: US$10 million
• Investors: Greylock Partners

LinkedIn stands as the largest social media platform for professionals today. In the early days, it described itself as “the Friendster for business,” referring to the now-defunct social media platform.

Reid Hoffman, LinkedIn’s co-founder, didn’t think comparing the firm with Friendster was an attractive context for fundraising, so to set itself apart, it began defining the business as a “network of trusted professionals.” The move is explained in this 2004 series B pitch deck, which bagged the company US$10 million from Greylock Partners.

How is the deck compelling?

• Its first few slides distinctly define what LinkedIn is, why its network and platform functionalities are valuable, and what sets it apart from other websites at the time.
• The pitch establishes the company’s first-mover advantage in the space, comparing itself with firms in adjacent internet businesses like Google, eBay and PayPal.
• It illustrates that LinkedIn has exceeded its growth projections and has established market leadership.
• Prominent partner organizations who use the platform and believe in its potential were listed down.
• The presentation reveals that the company has achieved some key accomplishments and that it spent a little less than its series A funding.
• It consistently hammers in the value of the firm’s network-empowered platform, its traction so far, and its viable revenue model, which it would use to fuel future growth.
• With its pitch, LinkedIn is essentially saying, “We have potential for both high revenue and high margins, and here’s why.”
• The deck lists conservative projections on when the company will achieve operating profitability.

It’s a very meaty deck. Fortunately, Hoffman wrote an extensive, in-depth analysis of the deck here.

SOURCE

Deck: Joseph Hsieh
Copy: Eric Oandasan