Construction's jobless boost professional network LinkedIn

The economic crisis has given a boost to LinkedIn, the professional internet network, as people look for advice and jobs from their online contacts. Currently there are over 500 construction related groups.

There might be valuation woes elsewhere, but LinkedIn has enjoyed a further lift in its worth, that figure now having reached £500m.

Dan Nye, chief executive, told the Financial Times today: “The network is booming.” Nye pointed to a new member every second, bringing the total users to a figure of 30m.

LinkedIn raised a further £25m in June with the list of new strategic investors including Goldman Sachs, McGraw-Hill (publisher of Business Week) and German business software group SAP.

The FT reports: “LinkedIn does not disclose its financial figures but says it is profitable.”

It adds: “Sequoia Capital, an investor in LinkedIn, recently told all its portfolio companies to ‘get real or go home’ in a presentation entitled ‘RIP: Good Times’.”

LinkedIn is seen as a long-term opportunity by those who have invested their cash, the rational for this view is that “LinkedIn’s network effect means that it becomes more valuable and useful to its members over time”

Older members are “reactivated” by connections from new ones, saving on marketing costs.