LinkedIn valued at $1bn as Bain takes stake

Its $1bn valuation compares with the $175m paid in May by US cable company Comcast for Plaxo, which launched in 2001 as an address-book synching tool and launched its own social network site Plaxo Pulse last year. Plaxo claims to have 20m members.

Facebook is the most highly valued social networking site, valued at $15bn when Microsoft bought a 1.6% share last year, while AOL paid $850m for Bebo in May.

LinkedIn will direct its new cash into its current expansion in major European markets, according to Kevin Eyres, its European managing director.

Eyres said: "Europe is an integral part of LinkedIn's growth strategy. The new funds will enable us to invest more heavily in the European market -- a geography for whom networking and business knowledge sharing continues to accelerate."

Jeffrey Glass, venture partner at Bain Capital Ventures, said: "Unlike other online networks, user engagement on LinkedIn actually increases over time, a strong testament to the ongoing value that LinkedIn members derive from the experience."

LinkedIn is free to join and makes money from advertisers and recruitment companies and by charging users for additional services.

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