LinkedIn Series D Opportunity - Investment Recommendation

1. Series D Opportunity – March 2008
Total round size: $85-125M

2. 2
Why LinkedIn?
• Large “exit ready” social network for professionals
• One of three elite social networks and clear leader in their demographic
• MySpace – Teenage and younger; $25B implied valuation
• Facebook – College and young professional; $15B actual valuation
• LinkedIn – Professional / business user – post college demographic
• Current growth very high: Revenues: ’05 $1.2M, ’06 $9.9M, ’07 $32.3M, ’08E $82.3M
• Very high room for increased growth, current asset under utilized; strong roadmap
• Large scale advertising yet to be rolled out; Additional $100M+ recurring revenue untapped
(referencing Facebook data)
• Almost no sales or marketing resources
• Yet to turn on OpenSocial platform for applications (similar application platform released
prior to and responsible for Facebook’s largest spike in growth)
• Yet to sell into enterprises who are very hungry for professional social network solution
• Yet to fully sell into conferences, who are also hungry for solution
• Yet to roll out formal corporate recruiting solution
• They have the right team and technology, the timing is ripe to be more aggressive

3. 3
Executive Summary
Company Information
– Founded in 2002 and launched in 2003
• HQ in Mountain View, CA
• Revenues: ’05 $1.2M, ’06 $9.9M, ’07 $32.3M, ’08E $82.3M
• EBITDA positive since March 2006
• IPO Candidate: Equipped for exit within one year
LinkedIn is the largest professional-oriented social network platform:
– Network effects: network between users, network between business lines
– Huge markets: recruiting, media, services, sales, productivity software and others
• Google for finding professionals
• eBay for Labor Markets
• Microsoft and Google for Internet productivity
Members & Traffic
– Members: 20 million, adding 1M+ per month at ~$0 CPA
– Monthly Unique Visitors: 6.6 million / 2.8x y-o-y
– 260M “Connections”
Funding
– Series A → $4.7M (Nov’03) - Sequoia
– Series B → $10M (Oct’04) - Greylock
– Series C → $12.8M @ $237M pre-money valuation (Dec’06) – Bessemer and European Founders
– Other investors include Marc Andreessen and Peter Thiel
Investment Proposal – Seeking approval for:
– Leading the deal at pre-money valuation of no greater than $1.1B post
– [INVESTOR X] to invest $85-125M of $125M raise
• Use of proceeds: Expansion capital
– Potential warrant coverage from advertising revenue driven by [INVESTOR X] (direct/indirect ad
spend)
– Expected return: >2X

4. 4
Valuation and Exit Potential
Valuation and
Deal Terms
• Exit very likely to be IPO, not likely to raise another round unless it’s a
pre-IPO strategic round (company is cash flow positive + this round of
extra cash); expansion of biz model elements presents risk/opportunity
• Syndicate already done (led by Sequoia), prior to [INVESTOR X]
disruption – Multiple sources pricing the round between $1.5-1.7B; High
investor interest
• Minimum Protective Terms if [INVESTOR X] leads deal at $1.5B+
• QIPO min of 1.2x – protects min return on IPO
• Senior 1.5-2x preferred liquidation preference on series D – protects min
return upon acquisition
• Redemption rights on the series
Exit potential
• Already at point for rich M&A, if desired – Leader in space, many
potential suitors.
• Company is currently not interested in M&A, feeling they have a lot of
growth in the short term that they will be able to capitalize on later
during IPO exit in ’10-11. Significant upside opportunities still untapped.
• Valuation is very high - company would need to exit at $3B+ for this to be
an interesting investment – embedded ‘leadership premium’
Risks

5. 5
Management Team
Reid Hoffman
Chairman and
President, Products
• Founding CEO
• EVP of PayPal
• BoD for SixApart and Mozilla
Dan Nye
CEO
• EVP and GM at Advent
• VP and GM at Intuit
Steve Sordello
CFO
• CFO of Tivo, Inc
• CFO at AskJeeves
Jean-Luc Vaillant
CTO and Co-Founder
• Director of Engineering at Logitech
• Director of Software Development at Spotlight
• Strong management team with prior successes
• Second or third startup for most of the team
• Chairman/President very methodical and well connected. High integrity
• Team fully hired - http://www.linkedin.com/static?key=management
Grade: A

6. 6
LinkedIn Facts
• Largest professional
networking site
• High profile users
– Avg user income $140K
– Avg user age 35 years old
• 1.4M+ users are senior executives; All Fortune 500 companies have executive
level employees as members
• 20M registered users spanning 150 industries & 400+ economic regions
• Traffic increased 323% YoY; Adding 1M users every 25 days
• Selective open API platform (revenue share)
• Reached profitability in Mar’06 with $10M ’06 revenues; expect ~$90M revenue
in 2008 and pending IPO
• 240+ employees; Executive Team: Dan Nye (CEO), Steve Sordello (CFO), Reid
Hoffman (Founder/Chairman)
• Investors include Greylock, Sequoia, Bessemer, European Founders Fund;
Raised total of $27.5M

7. 7
LinkedIn Business Framework – Just the Beginning
Software
licensing
Contextual
advertising
Marketplace
Subscriptions
Job ads
search
Classifieds
General
advertising
Experts
Recruiting Media Research Services Sales/BD
Individual
productivity
Enterprise
applications

8. 8
Large Addressable Market Segment
Users of social networks:
506 million monthly unique visitors in
20071
Advertising on social networks:
$2.5 billion by 20112
1
comScore, November 2006/2007, worldwide statistics; business websites include: Yahoo! Finance, NYTimes.com, Forbes.com, CNN Money, WSJ.com, BusinessWeek.com, Bloomberg.com, MarketWatch.com, TheStreet.com, Google Finance
2
eMarketer
3
US Central Intelligence Agency, World Factbook
4
US Census Bureau; US professional force calculated as males and females of the labor force with greater than $50,000 income
5
UN ILO labor stats; defined as total professionals, technicians and associate professionals in 2006
6
Corzen
7
IDC, worldwide figures
8
Wall Street research
US labor force:
151 million in 20063
US professional workforce:
57 million in 20064
US employers with >500 employees:
17,000+4
Online recruiting spend:
$4.5 billion by 20106
2006 page views1
Social
networking
24%
General
Internet
76%
2007 page views1
Social
networking
40%
General
Internet
60%
HRMS spend:
$6.2 billion by 20107
CRM spend:
$12.7 billion by 20107
Business intelligence:
$11.5 billion in 20068
Global labor force:
3 billion in 20053
Global professional workforce:
171 million in 20065
Top 10 business news sites:
2 billion monthly page views
in 20071
Global Recruiting Advertising:
$16B in 2007
Global Staffing spend:
~$75B in 2007
Social networks Professionals Enterprises

9. 9
LinkedIn vs. Facebook
Types of
uses and/or
applications
Photo
Sharing
Top
Friends
Super
Wall
Movie
Tastes
Bumper
Stickers
Play
Scrabble
Compare
People
Super
Poke
Texas
Hold ‘em
Share Music
Taste
20 million
People
search
Check
References
Get
Introduced
Post a
job
Recruit
Get Valuable
News
Get
Advice
Recommend
someone
Conduct
research
Send a
message
60 million
Business model
Advertising
Advertising Subscriptions
corporate job postings
Ad rev per
000 page views
Total rev per
000 page views
$0.42 $7.68
$0.42 $31.55
4+ million 1+ million
87M installs of Top 5 Social apps
870K installs of Top 5 Bus apps
Members
Monthly growth

10. 10
Opportunities: Disruptions to Landscape?
$0 CPA
User-generated content (scale)
Profiles for best ad products
User to User ad productsMedia
Future of recruiting
Access to “passive” job seekers
Resume v2
Network Effects
Online
recruiting
Massive user scale
International reach
Unique products
Research

11. 11
FINANCIAL ANALYSIS

12. 12
Company Financials
Year % Growth
FY05 FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10
Revenue
Online Subscriptions 382$ 4,716$ 14,629$ 28,003$ 48,657$ 81,456$ 1135% 210% 91% 74% 67%
Online Jobs 412 2,016 5,821 14,184 29,641 57,670 389% 189% 144% 109% 95%
Advertising 296 2,053 7,827 27,658 64,825 123,909 594% 281% 253% 134% 91%
Corporate Sales 105 1,090 3,881 12,495 48,587 103,637 938% 256% 222% 289% 113%
Total 1,195$ 9,875$ 32,159$ 82,340$ 191,711$ 366,673$ 726% 226% 156% 133% 91%
Total Spending 6,271$ 10,621$ 30,402$ 80,272$ 144,454$ 239,816$ 69% 186% 164% 80% 66%
EBITDA (5,076)$ (746)$ 1,758$ 2,068$ 47,257$ 126,857$ -85% -336% 18% 2185% 168%
EBITDA Margin -425% -8% 5% 3% 25% 35%
Depreciation 513$ 663$ 1,435$ 5,026$ 9,953$ 16,825 29% 116% 250% 98% 69%
Other Income 120 720 815 780 1,174 1,618 500% 13% -4% 50% 38%
Taxes - - - - 11,543 39,078 NA NA NA NA 239%
Net Income* (5,469)$ (689)$ 1,138$ (2,178)$ 26,934$ 72,572$ NA NA NA NA 169%
Headcount 31 68 197 370 550 700 119% 190% 88% 49% 27%
Revenue/Head 51$ 199$ 244$ 290$ 417$ 587$ 292% 22% 19% 43% 41%
Bookings
Online Subscriptions 711$ 6,321$ 17,283$ 33,033$ 59,300$ 99,798$ 789% 173% 91% 80% 68%
Online Jobs 458 2,122 6,286 15,098 32,360 61,028 363% 196% 140% 114% 89%
Advertising 296 2,134 7,783 30,063 72,028 137,677 621% 265% 286% 140% 91%
Corporate 105 1,771 7,855 34,451 82,093 155,536 1587% 344% 339% 138% 89%
Total 1,570$ 12,348$ 39,206$ 112,646$ 245,781$ 454,040$ 686% 218% 187% 118% 85%
New Signups 2,782 3,930 9,377 18,267 31,437 36,205 41% 139% 95% 72% 15%
% Warm 80% 69% 65% 65% 65%
Member Base 4,381 8,291 17,480 35,252 65,744 100,331 89% 111% 102% 86% 53%
Page Views (M) 477 830 2,672 8,304 17,919 29,749 74% 222% 211% 116% 66%
Unique Visitors 1,117 1,803 5,460 13,406 25,001 29,484 61% 203% 146% 86% 18%

13. 13
LT Forecast - Sensitized
Income Statement ($M) 2007 2008 2009 2010 2011 2012
Revenue $32.2 $72.6 $192.0 $330.6 $379.9 $437.4
Revenue Growth % 125.8% 164.5% 72.2% 14.9% 15.1%
Cost of Revenues $8.4 $14.9 $26.4 $36.4 $41.8 $48.1
Gross Profit $23.7 $57.7 $165.6 $294.2 $338.1 $389.3
Gross Margin % 73.8% 79.5% 86.3% 89.0% 89.0% 89.0%
Total Operating Expense $23.4 $52.9 $139.8 $240.7 $276.6 $318.5
Operating Income $0.3 $4.9 $25.8 $53.5 $61.5 $70.8
Other Income $0.8 $0.8 $1.2 $1.6 $1.6 $1.6
Taxes (30%) $0.0 $1.7 $8.1 $16.5 $18.9 $21.7
Net Profit $1.1 $3.9 $18.9 $38.6 $44.2 $50.7
Profit Margin % 3.5% 5.4% 9.8% 11.7% 11.6% 11.6%
EBITDA $1.8 $8.1 $34.4 $68.3 $78.5 $90.3
EBITDA Margin % 5.5% 11.2% 17.9% 20.7% 20.7% 20.7%
** Bottoms up
COGS as % of revenues: ’07 – 26%, ’08 – 20%, ’09 – 14%; ’10+ – 11%

14. 14
CF Forecast - DCF
Cash Flow Statement ($M) 2007 2008 2009 2010 2011 2012
Net Income $1.1 $3.9 $18.9 $38.6 $44.2 $50.7
Depreciation & Amortization $1.4 $3.2 $8.6 $14.8 $17.0 $19.5
Changes in Net Working Capital: $2.4 $5.2 $14.1 $15.9 $5.9 $6.9
Cash Flow from Operations $5.0 $12.3 $41.6 $69.2 $67.1 $77.1
Acquisition of Property & Equipment ($8.7) ($0.8) ($3.8) ($7.7) ($8.8) ($10.1)
Cash Flow from Investments ($8.7) ($0.8) ($3.8) ($7.7) ($8.8) ($10.1)
Cash Flow from Financing $16.4 $125.0 $0.0 $0.0 $0.0 $0.0
Net Increase/(Decrease) in Cash Flow $12.7 $136.6 $37.8 $61.5 $58.2 $67.0
Beginning Cash Flow Balance $4.1 $16.7 $153.3 $191.1 $252.6 $310.8
Ending Cash Flow Balance $16.7 $153.3 $191.1 $252.6 $310.8 $377.8
Cumulative Cash Burn $12.7 $149.2 $187.0 $248.5 $306.8 $373.8
Free Cash Flow ($3.7) $11.6 $37.8 $61.5 $58.2 $67.0
DCF Valuation ($M) 2008 2009 2010 2011 2012
Terminal
Value
Free Cash Flow $11.6 $37.8 $61.5 $58.2 $67.0 $1,474.1
Discount Rate 15%
LT Growth Rate 10%
DCF Valuation $783.0
Free Cash Flow $11.6 $37.8 $61.5 $58.2 $67.0 $7,370.3
Discount Rate 15%
LT Growth Rate 14%
DCF Valuation $3,332.1

15. 15
Comps (M&A/Funding Activity)
Company Name Acquirer Date Price ($M)
Revenue
($M)
Uniques
(M)
Monthly
Page
Views (M)
Valuation/
Unique
Revenue
Multiples
Valuation/
Page
View
Youtube Google Aug'06 $1,650 $15 16.0 1,055.0 $103.13 110.0x $1.56
aQuantive Microsoft May'07 $6,000 $94 N/A N/A N/A 63.7x N/A
LinkedIn Funding Mar'08 $1,500 $32 6.8 65.6 $221.51 46.6x $22.87
Facebook Funding Oct'07 $15,000 $154 33.7 40,000.0 $444.51 97.4x $0.38
Facebook ('08 Est.) Funding Oct'07 $15,000 $400 33.7 40,000.0 $444.51 37.5x $0.38
FriendsReunited ITV Dec'05 $320 $24 15.0 N/A $21.33 13.3x N/A
DoubleClick Google Apr'07 $3,100 $300 N/A N/A N/A 10.3x N/A
Club Penguin Sony May'07 $450 $60 4.3 N/A $104.65 7.5x N/A
ivillage NBC Mar'06 $600 $91 4.0 260.0 $150.00 6.6x $2.31
Flickr Yahoo 2005 $16M - $22M N/A 17.0 80.0 $1.11 N/A $0.20
Neopets Viacom Jun'05 $160 N/A 25.0 N/A $6.40 N/A N/A
Myspace NewsCorp Jul'05 $580 N/A 12.0 7,080.6 $48.33 N/A $0.08
IGN NewsCorp Sep'05 $650 N/A 28.0 120.0 $23.21 N/A $5.42
Grouper Sony Aug'06 $65 N/A 8.0 N/A $8.13 N/A N/A
Xing IPO'd Dec'06 $200 N/A 4.5 N/A $44.44 N/A N/A
MyBlogLog Yahoo Jan'07 $10 N/A 0.2 N/A $50.00 N/A N/A
Bolt GoFish Feb'07 $30 N/A 7.3 N/A $4.11 N/A N/A
Stumbleupon eBay Apr'07 $75 N/A 0.9 6.0 $83.00 N/A $12.50
Photobucket News Corp May'07 $300 N/A 20.0 1,619.0 $15.00 N/A $0.19
last.fm CBS May'07 $280 N/A 8.5 N/A $32.94 N/A N/A
Flektor News Corp Jun'07 $20 N/A 0.13? N/A $153.85 N/A N/A
Median $46.39 25.42x $0.38

16. 16
Implied Valuation - Forecasts
Valuation ($M) 2007 2008 2009 2010 2011 2012
Conservative Forecast
Comp Median Price/'07 Sales $295.4 $621.2 $963.6 $1,229.2 $1,398.6 $1,494.9
Comp Median Price/'08 Sales $213.6 $449.1 $696.7 $888.7 $1,011.2 $1,080.9
Comp Median Price/Unique $3,381.7 $7,110.2 $11,029.7 $14,069.9 $16,009.0 $17,112.1
Comp Median Price/Pg View $424.7 $893.0 $1,385.3 $1,767.2 $2,010.7 $2,149.3
Comp Median TEV/Unique $3,302.1 $6,942.8 $10,770.1 $13,738.7 $15,632.1 $16,709.3
Comp Median TEV/Pg View $520.5 $1,094.3 $1,697.5 $2,165.4 $2,463.9 $2,633.7
Google Price/Sales $295.4 $621.2 $963.6 $1,229.2 $1,398.6 $1,494.9
YouTube Price/Sales $3,537.5 $7,437.7 $11,537.9 $14,718.1 $16,746.5 $17,900.5
Facebook Price/'07 Sales $3,132.4 $6,586.0 $10,216.6 $13,032.6 $14,828.7 $15,850.5
Exit Price/Unique ** $314.1 $660.5 $1,024.6 $1,307.0 $1,487.1 $1,589.5
Median $472.6 $993.7 $1,541.4 $1,966.3 $2,237.3 $2,391.5
Medium Forecast
Comp Median Price/'07 Sales $295.4 $816.6 $1,969.0 $4,191.9 $7,978.1 $13,742.7
Comp Median Price/'08 Sales $213.6 $590.4 $1,423.6 $3,030.9 $5,768.4 $9,936.3
Comp Median Price/Unique $3,381.7 $9,347.2 $22,538.4 $47,984.1 $91,323.0 $157,309.0
Comp Median Price/Pg View $424.7 $1,174.0 $2,830.8 $6,026.8 $11,470.1 $19,757.9
Comp Median TEV/Unique $3,302.1 $9,127.2 $22,007.8 $46,854.5 $89,173.2 $153,605.8
Comp Median TEV/Pg View $520.5 $1,438.6 $3,468.8 $7,385.1 $14,055.2 $24,210.8
Google Price/Sales $295.4 $816.6 $1,969.0 $4,191.9 $7,978.1 $13,742.7
YouTube Price/Sales $3,537.5 $9,777.9 $23,576.8 $50,194.8 $95,530.5 $164,556.6
Facebook Price/'07 Sales $3,132.4 $8,658.1 $20,876.8 $44,446.4 $84,590.2 $145,711.3
Exit Price/Unique ** $314.1 $868.3 $2,093.6 $4,457.2 $8,483.0 $14,612.4
Median $472.6 $1,306.3 $3,149.8 $6,705.9 $12,762.6 $21,984.3
** Comp companies include Google, Yahoo!, Microsoft/MSN, eBay, Amazon, VMWare, Facebook, aQuantive &
DoubleClick

17. 17
SUMMARY OF VALUATION ANALYSIS
• P/S metric (median of comp – SocNW segment):
– ’08 forecast implies valuation of $1.75B (21.2X NTM; 46.6X TTM)
– Median is 23.1X TT M and 21.2X NTM
• Median range (using various commonly accepted metrics)
– $993M - $1.3B (through ’08);
– ~$2.4 - $22B by ’12
• DCF Valuation
– 10% growth rate – $783M
– 14% growth rate - $3.3B

18. 18
Exit Analysis
M&A
$1,800.0 $2,100.0 $2,400.0 $2,700.0 $3,000.0 $3,300.0 $3,600.0 $3,900.0 $4,200.0 $4,500.0
$900.0 22.69% 29.76% 36.20% 42.16% 47.70% 52.90% 57.81% 62.47% 66.90% 71.14%
$1,050.0 16.75% 23.48% 29.61% 35.28% 40.55% 45.51% 50.18% 54.61% 58.82% 62.85%
$1,200.0 11.77% 18.21% 24.08% 29.50% 34.55% 39.29% 43.77% 48.01% 52.04% 55.90%
$1,350.0 7.50% 13.69% 19.34% 24.56% 29.41% 33.97% 38.27% 42.35% 46.24% 49.95%
$1,500.0 3.78% 9.76% 15.21% 20.25% 24.94% 29.34% 33.49% 37.43% 41.18% 44.76%
$1,650.0 0.51% 6.30% 11.58% 16.46% 21.00% 25.26% 29.28% 33.09% 36.73% 40.19%
$1,800.0 0.00% 3.21% 8.34% 13.07% 17.48% 21.62% 25.53% 29.23% 32.76% 36.12%
$1,950.0 0.00% 0.44% 5.43% 10.03% 14.33% 18.35% 22.15% 25.76% 29.19% 32.46%
$2,100.0 0.00% 0.00% 2.79% 7.28% 11.46% 15.39% 19.10% 22.61% 25.95% 29.15%
$2,250.0 0.00% 0.00% 0.38% 4.77% 8.85% 12.69% 16.31% 19.74% 23.00% 26.13%
ROI 1.1x 1.3x 1.5x 1.7x 1.8x 2.0x 2.2x 2.4x 2.6x 2.8x
12/31/2010
M&A Exit ($M) - ICAP IRR%
Pre-MoneyValuation($M)
IPO
$1,800.0 $2,100.0 $2,400.0 $2,700.0 $3,000.0 $3,300.0 $3,600.0 $3,900.0 $4,200.0 $4,500.0
$900.0 13.14% 19.66% 25.60% 31.09% 36.20% 41.00% 45.53% 49.82% 53.91% 57.81%
$1,050.0 7.67% 13.87% 19.52% 24.75% 29.61% 34.18% 38.49% 42.57% 46.46% 50.18%
$1,200.0 3.07% 9.00% 14.42% 19.42% 24.08% 28.45% 32.57% 36.48% 40.21% 43.77%
$1,350.0 -0.87% 4.84% 10.05% 14.86% 19.34% 23.54% 27.51% 31.27% 34.85% 38.27%
$1,500.0 -4.29% 1.22% 6.25% 10.89% 15.21% 19.27% 23.10% 26.73% 30.19% 33.49%
$1,650.0 -7.31% -1.98% 2.89% 7.39% 11.58% 15.51% 19.22% 22.73% 26.08% 29.28%
$1,800.0 -10.01% -4.82% -0.09% 4.27% 8.34% 12.16% 15.76% 19.17% 22.42% 25.53%
$1,950.0 -12.43% -7.38% -2.78% 1.47% 5.43% 9.14% 12.64% 15.97% 19.13% 22.15%
$2,100.0 -14.62% -9.70% -5.21% -1.07% 2.79% 6.41% 9.82% 13.06% 16.15% 19.10%
$2,250.0 -16.62% -11.82% -7.43% -3.39% 0.38% 3.92% 7.25% 10.42% 13.43% 16.31%
ROI 1.1x 1.3x 1.5x 1.7x 1.8x 2.0x 2.2x 2.4x 2.6x 2.8x
IPO Exit ($M) - ICAP IRR%
Pre-MoneyValuation($M)
12/31/2010
Likely IPO range at $3B - $6B in ’10-’11

19. 19
Deal Summary
Other names and brands may be claimed as the property of third parties
LinkedIn’s Desires [INVESTOR X] Proposal
$1.5-1.7B pre-money $1.5B or lower valuation
Clean terms for lower valuation IPO must be >1.2X post money
>1x Non-Participating Preferred? 2x participating preferred
No class voting Series voting; seniority
Open on board seat, observer BoD seat/observer & blocking rights
All other rights mirror series C Drag along carve out, redemption,
time de-limited full ratchet (18-24
months)
QPO 3x: $250M minimum raise
[INVESTOR X]Fallback Positions
$1.5-1.6B pre-money ceiling
1.5x non part. pref
Weighted Average Anti-Dilution
Class voting

20. 20
Recommendation
Proceed to due diligence & negotiate/issue term sheet for [Investor X]
lead of $85-125M as part of $100-125M Series D round funding at TBD
pre-money valuation (not to exceed $1.6B)

21. 21
Backup

22. 22
Board of Directors
Reid Hoffman (Chairman)
Mark Kvamme (Sequoia Capital)
Software and services investments at Sequoia Capital; Chairman of USWeb/CKS
and Chairman and CEO of CKS Group prior to the merger with USWeb; Director
of International Marketing for Wyse Technology; President and CEO of
International Solutions; Founding member of Apple France
Dan Nye (CEO)
David Sze (Greylock)
General Partner at Greylock; SVP of Product Strategy at Excite; Product
marketing and development at Crystal Dynamics and Electronic Arts; Boston
Consulting Group and Marakon Associates

23. 23
Business Models – A Comparison
Licensing/subscriptions
40% Operating margins
Digital goods—no
inventory
Massive scale
Network effects
Low user acquisition
costs
Marketplace/transactions
Contextual advertising
Licensing/subscriptions
40% Operating margins
Digital goods—no
inventory
Massive scale
Network effects
Low user acquisition
costs
Marketplace/transactions
Contextual advertising

24. 24
Subscription Offerings

25. 25
The LinkedIn Value Chain*
*Based on January 2008 run-rate - Monthly growth relative to December 2007

26. 26
Why Will LinkedIn [Continue To] Win?
NEW BUSINESS LINES
Key Differentiation:
• New Businesses grow
organically from the network
• Value scales with entire
network (network effects)
• individuals, businesses
• Growing in every industry,
globally
• Base new businesses off
organic growth
THE NETWORK
Key Differentiation:
• Business focus: features,
brand, network
• Viral growth: entirely by
individuals’ actions
• Value scales with entire
network (network effects)
• Growing in every
industry, globally
• Organic growth into
every business
MEDIA
Key Differentiation:
• User generated content
• Best of class demographics
• Unique targeting capabilities
• Organic growth in every
industry, globally
• Ability to scale across the web
• Future possibilities with self-
service, B2B lead gen
RECRUITING
Key Differentiation:
• Passive Recruiting: the
recruiting of the future
• Resume v2.0
• Linkedin or Leftout
• Value scales with entire
network (network effects)
• Organic Growth in every
industry, globally

27. 27
Largest Professional Network
Domestic
Growth Days
0 to 1MM members 477
1 to 2MM members 181
5 to 6MM members 102
9 to 10MM members 60
18 to 19MM members 28
199 of top 200 markets
grew 70%+ in 2007;
155 grew 100%+
0
5
10
15
20
May-03 Jul-04 Sep-05 Nov-06 Jan-08
Domestic International
Millionsofmembers
Globally 4x larger than
nearest competitor;
50x larger in the U.S.

28. 28
Best and Broad Demographics
School: 58K
HBS: 17K
School: 50K
GSB: 8K
13K
32K
19K
13M University Alumni
31K
Employees: 58K
Alumni: 23K
19K
Employees: 15K
Alumni: 12K
Employees: 116K
Alumni: 71K
1.9M F500 Employees
41
27%
$109,762
Demographics
Average Age
Average HHI
HHI >$150K
78%College Grad
Portfolio
$250K+
28%
1.2M Small Business Owners
2.2M Senior Executives
VPs at every F500 company
Source: @plan Winter 2007/2008, internal data
13K
Employees: 13K
Alumni: 9K

29. 29
Growing Across Industries
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
May-03 Jan-04 Sep-04 May-05 Jan-06 Sep-06 May-07 Jan-08
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Largest sectors continuing to grow while base broadens
57 industries with over 100K members
Computer SW Telecom
Financial Svcs Marketing and Advertising
IT and Service
Members(000s)
Fastest growing
among top 50
TTM
growth
Entertainment 273%
Health, Fitness 267%
Education 245%
Medical Practice 212%
Government
Administration
211%
Share
5 Largest
Industries
TTM
growth
IT and Services 83%
Computer Software 69%
Telecom 74%
Financial Services 155%
Mktg/Advertising 106%

30. 30
Best of Class Audience
Property Average Age
% Comp
College Grad Average HHI
%Comp
EVP/SVP/VP
% Comp
Business
Decision
Makers
% Comp That
Read Business
Magazine Last 30
Days
41 78% $109,762 5.2% 46.5% 29%
47.4 71% $101,039 6% 38.4% 44%
46.7 66% $96,665 5.2% 39.9% 50%
47.3 68% $96,414 5.5% 37.5% 50%
Source: @plan Winter 2007/2008
A younger, more affluent, more influential and harder-to-find audience
than the leading business sites

31. 31
Recruiting Bookings
Bookings tripled from $5.7MM in 2006 to
$17.3MM in 2007
Forecast bookings of $32.7MM in 2008
Revenue growth from $14.5MM in 2007 to
$27.7MM in 2008
Bookings tripled from $1.8MM in 2006 to
$7.9MM in 2007
Forecast bookings of $31.8MM in 2008
Revenue growth from $3.9MM in 2007 to
$12.1M in 2008
Bookings tripled from $2.1MM in 2006 to
$6.3MM in 2007
Forecast bookings of $15.1MM in 2008
Revenue growth from $5.8MM in 2007 to
$14.2MM in 2008
Subscriptions JobsCorporate
$0
$2
$4
$6
$8
$10
$12
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
$0
$1
$2
$3
$4
$5
$6
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
New product intro
$0
$2
$4
$6
$8
$10
$12
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08

32. 32
Platform for New Businesses
Subscriptions business serves broad set of needs
outside networking and recruiting
• Sales
• Business development
• Market research
• Business intelligence
• Knowledge management
• Conference Management
$0
$1
$2
$3
$4
$5
$6
$7
$8
Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08
Millions
Bookings
Criteria for launching dedicated offerings
• Low investment
• Leverage network
• High margins
• Large market size
• Quick time to market

33. 33
$28.37
$26.68
$23.86
$4.45
$30.08
$24.04
$9.13
$7.32
$13.73
0
5
10
15
20
25
30
35
40
45
$100
Dice Career
Builder
M onster 51Jobs HotJobs eBay Yahoo! Google Xing M ixi
LinkedIn Revenue Upside
$86.91
Mean:
$34.05
Mean:
$21.08
Mean:
$10.52
Upside revenue opportunity
Current revenue projections
Job boards Internet
leaders
Business/
social
networking
Revenue/worldwide unique visitors
$0
$200
$400
$600
$800
$1,000
2007 2008E 2009E
($34.05 Ave Rev/User)
x 5.5MM Uniques)
($34.05 Ave Rev/User)
x13.4MM Uniques)
($34.05 Ave Rev/User)
x25.0MM Uniques)
LinkedIn potential revenue

34. 34
Summary of Prior Preferred Terms

35. 35
[sensitized]LT Balance Sheet Forecast
Balance Sheet ($M) 2007 2008 2009 2010 2011 2012
Assets
Cash & Cash Equivalents $16.7 $153.3 $191.1 $252.6 $310.8 $377.8
Accounts Receivable $5.5 $12.3 $32.6 $56.1 $64.4 $74.2
Prepaid Expenses & Others $1.1 $2.4 $6.4 $11.1 $12.8 $14.7
Current Assets $23.3 $168.0 $230.1 $319.8 $388.0 $466.7
Other Receivable $2.6 $2.6 $2.6 $2.6 $2.6 $2.6
Property & Equipment $8.7 $0.8 $3.8 $7.7 $8.8 $10.1
Total Assets $34.6 $171.4 $236.5 $330.1 $399.5 $479.5
Liabilities
Accounts Payable $2.5 $5.3 $13.0 $21.7 $24.9 $28.7
Accrued Liabilities & Other $2.2 $4.6 $11.3 $18.8 $21.6 $24.9
Notes Payable, Short Term $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Deferred Revenue & Others $6.5 $14.6 $38.6 $66.4 $76.3 $87.9
Total Liabilities $11.1 $24.5 $62.9 $106.9 $122.9 $141.5
Total Shareholders' Equity $23.5 $147.0 $173.6 $223.2 $276.6 $338.0
Total Liabilities & Equity $34.6 $171.4 $236.5 $330.1 $399.5 $479.5
Net Working Capital $12.2 $143.6 $167.2 $212.9 $265.2 $325.3
Control Box LinkedIn Comps
Accounts Receivable as % of Revenue 17.0% 19.1%
Prepaid Expenses & Others as % of Revenue 3.4% 0.7%
Accounts Payable as % of Expense 7.8% 10.3%
Accrued Liabilities as % of Expense 6.8% N/A
Deferred Revenue as % of Revenue 20.1% 8.1%
Property & Equipment as % of Net Income 20.0% 71.0%

36. 36
Sensitized Forecasts and Implied P/S ratios
2007 2008 2009 2010 2011 2012
Sensitized MU Growth% 220.5% 110.3% 55.1% 27.6% 13.8% 6.9%
Revenue ($M) $32.2 $67.6 $104.9 $133.8 $152.2 $162.7
Price/Sales ($1.5B) 46.6x 22.2x 14.3x 11.2x 9.9x 9.2x
Price/Sales ($1.0B) 31.1x 14.8x 9.5x 7.5x 6.6x 6.1x
2007 2008 2009 2010 2011 2012
Sensitized MU Growth% 125.8% 164.5% 72.2% 14.9% 15.1%
Revenue ($M) $32.2 $72.6 $192.0 $330.6 $379.9 $437.4
Price/Sales ($1.5B) 46.6x 20.7x 7.8x 4.5x 3.9x 3.4x
Price/Sales ($1.0B) 31.1x 13.8x 5.2x 3.0x 2.6x 2.3x
2007 2008 2009 2010 2011 2012
Revenue Growth Rate 408.5% 233.5% 117.6% 92.5% 72.8%
Implied Revenue ($M) $32.2 $163.5 $545.5 $1,186.7 $2,284.2 $3,946.1
Price/Sales ($1.5B) 46.6x 9.2x 2.7x 1.3x 0.7x 0.4x
Price/Sales ($1.0B) 31.1x 6.1x 1.8x 0.8x 0.4x 0.3x
2007 2008 2009 2010 2011 2012
Revenue Growth Rate 219.5% 158.3% 137.7% 194.8% 76.9%
Implied Revenue ($M) $32.2 $102.8 $265.4 $630.8 $1,859.9 $3,290.9
Price/Sales ($1.5B) 46.6x 14.6x 5.7x 2.4x 0.8x 0.5x
Price/Sales ($1.0B) 31.1x 9.7x 3.8x 1.6x 0.5x 0.3x
GoogleFacebookMediumConservative

37. 37
Price/Sales Comps
2007 2008
Price/Sales Comp Median** 9.2x 6.6x
Conservative Valuation ($K) $295,429.6 $449,109.5
Medium Valuation ($K) $295,429.6 $590,412.7
Price/Sales Google 9.2x 6.6x
Conservative Valuation ($K) $295,429.6 $449,109.5
Medium Valuation ($K) $295,429.6 $590,412.7
Price/Sales Facebook 96.9x 37.5x
Conservative Valuation ($K) $3,114,650 $2,535,594
Medium Valuation ($K) $3,114,650 $3,333,367
Price/Sales Ad Agencies 10.5x N/A
Conservative Valuation ($K) $338,516.4 N/A
Medium Valuation ($K) $338,516.4 N/A
** Comparable companies include Google, Yahoo!,
Microsoft/MSN, eBay, Amazon, VMWare, Facebook,
aQuantive & DoubleClick

38. 38
Comps - Ratios
Valuation
Price/'07
Est Sales
Price/'08
Est Sales
Price/
EBITDA
Price/
Earning
Price/
Unique
Price/Pg
View
TEV/'07
Est. Sales
TEV/'08
Est. Sales
TEV/
EBITDA
TEV/
Earnings
TEV/
Uniques
TEV/Pg
Views
Aggressive Comps
Google 9.2x 6.6x 25.2x 36.3x $1,191.2 $8.8 8.3x 6.0x 22.8x 32.9x $1,080.1 $7.9
Yahoo! 5.4x 6.7x 27.8x 57.0x $275.9 $1.2 5.2x 6.5x 26.8x 55.1x $266.8 $1.1
Amazon 2.1x 1.6x 33.9x 64.2x $517.6 $14.8 1.9x 1.5x 31.9x 60.4x $487.6 $14.0
eBay 4.9x 4.3x 14.5x 108.9x $481.2 $4.2 4.3x 3.8x 12.7x 94.8x $419.0 $3.7
VMWare 16.3x 10.8x 63.8x 99.3x N/A N/A 15.7x 10.4x 61.5x 95.7x N/A N/A
Facebook 96.9x 37.5x 347.2x 815.7x $443.0 $1.2 N/A N/A N/A N/A N/A N/A
Microsoft/MSN 4.5x 4.3x 10.3x 15.3x $2,835.0 $29.1 4.1x 4.0x 9.5x 14.2x $2,626.1 $27.0
aQuantive 11.0x N/A 67.3x 103.7x N/A N/A 11.0x N/A 67.3x 103.7x N/A N/A
DoubleClick 10.0x N/A 185.4x 107.3x N/A N/A 10.0x N/A 185.4x 107.3x N/A N/A
LinkedIn (Asking) 46.6x 18.2x 853.4x 1318.5x $221.5 $22.9 N/A N/A N/A N/A N/A N/A
LinkedIn (Implied) $295.4 546.9 59.6 112.9 3,381.7 $424.7 217.8 412.3 51.7 88.3 $3,302.1 $520.5
Average 17.8x 10.3x 86.1x 156.4x $957.3 $9.9 7.6x 5.4x 52.2x 70.5x $975.9 $10.7
Median 9.2x 6.6x 33.9x 99.3x $499.4 $6.5 6.8x 5.0x 29.4x 77.6x $487.6 $7.9
High 96.9x 37.5x 347.2x 815.7x $2,835.0 $29.1 15.7x 10.4x 185.4x 107.3x $2,626.1 $27.0
Low 2.1x 1.6x 10.3x 15.3x $275.9 $1.2 1.9x 1.5x 9.5x 14.2x $266.8 $1.1
Price/'07
Est Sales
Price/'08
Est Sales
Price/
EBITDA
Price/
Earning
Price/
Unique
Price/Pg
View
TEV/'07
Est. Sales
TEV/
EBITDA
TEV/
Earnings
Social Networking Site Comps
MySpace 7.3x 4.9x 76.3x 128.9x $37.4 $0.1 N/A N/A N/A
Facebook 96.9x 37.5x 347.2x 815.7x $443.0 $1.2 N/A N/A N/A
Bebo N/A N/A N/A N/A $229.6 $0.6 N/A N/A N/A
Mixi 23.1x N/A 53.7x 109.9x N/A N/A 22.0x 51.2x 104.8x
CyWorld N/A N/A N/A N/A $0.0 N/A N/A N/A N/A
StudiVZ N/A N/A N/A N/A $132.0 N/A N/A N/A N/A
TenCent 23.1x N/A 52.0x 59.9x N/A N/A 22.1x 49.7x 57.2x
Xing 11.1x N/A 140.3x -441.0x N/A N/A 9.2x 115.5x -363.1x
LinkedIn (Asking) 46.6x 18.2x 853.4x 1318.5x $221.5 $22.9 N/A N/A N/A
LinkedIn (Implied) $742.5 $1,746.2 $134.1 $125.0 $893,850.7 $40.4 $708.1 $90.1 $65.1
Average 32.3x 21.2x 133.9x 134.7x $168.4 $0.6 17.8x 72.2x -67.0x
Median 23.1x 21.2x 76.3x 109.9x $132.0 $0.6 22.0x 51.2x 57.2x
High 96.9x 37.5x 347.2x 815.7x $443.0 $1.2 22.1x 115.5x 104.8x
Low 7.3x 4.9x 52.0x -441.0x $0.0 $0.1 9.2x 49.7x -363.1x

39. 39
Ratio Analysis
Liquidity Ratio Profitability Ratio
Ratio Analysis
C
urrentR
atio
Q
uick
R
atio
C
ash
Flow
R
atio
N
etW
orking
C
apital/Total
A
ssetsD
efensive
Interval
G
ross
M
argin
%
EB
ITD
A
M
argin
%
ProfitM
argin
%
R
eturn
on
A
ssets
R
eturn
on
Equity
A
/R
TurnoverA
/P
Turnover
Inventory
Turnover
D
ays
R
e
LinkedIn 2007 Actuals 2.1x 2.1x 0.5x 0.4x 363 73.8% 5.5% 3.5% 3.3% 4.8%
LinkedIn'08 (Sensitized) 6.9x 6.9x 0.5x 0.8x 1,160 79.5% 11.2% 5.4% 2.3% 2.7%
LinkedIn'09 (Sensitized) 3.7x 3.7x 0.7x 0.7x 601 86.3% 17.9% 9.8% 8.0% 10.9%
LinkedIn'10 (Sensitized) 3.0x 3.0x 0.6x 0.6x 485 89.0% 20.7% 11.7% 11.7% 17.3%
LinkedIn'11 (Sensitized) 3.2x 3.2x 0.5x 0.7x 512 89.0% 20.7% 11.6% 11.1% 16.0%
LinkedIn'12 (Sensitized) 3.3x 3.3x 0.5x 0.7x 535 89.0% 20.7% 11.6% 10.6% 15.0%
Google 8.5x 8.5x 2.8x 0.6x 1,300 59.9% 30.7% 25.3% 16.6% 18.5%
Yahoo! 1.4x 1.4x 0.8x 0.1x 344 59.3% 11.5% 9.5% 5.4% 6.9%
Microsoft 1.7x 1.7x 1.0x 0.2x 594 80.0% 40.7% 29.3% 25.2% 49.2%
VMWare 2.4x 2.4x 0.8x 0.3x 671 83.5% 17.8% 16.5% 8.1% 16.3%
Ebay 2.3x 2.3x 0.9x 0.3x 666 77.0% 28.8% 4.5% 2.3% 3.0%
News Corp 1.5x 1.4x 0.4x 0.1x 813 36.5% 19.7% 10.9% 4.8% 9.6%
Viacom 0.9x 0.7x 0.6x 0.0x 367 44.9% 25.5% 13.7% 8.2% 25.0%
Xing 4.1x 4.1x 1.1x 0.5x 1,231 59.1% 8.0% -2.4% -0.8% -1.0%
Mixi 8.1x 8.0x 1.7x 0.7x 754 91.7% 38.0% 20.2% 15.4% 17.3%
Average 3.4x 3.4x 1.1x 0.3x 749 65.8% 24.5% 14.2% 9.5% 16.1%
Median 2.3x 2.3x 0.9x 0.3x 671 59.9% 25.5% 13.7% 8.1% 16.3%
High 8.5x 8.5x 2.8x 0.7x 1,300 91.7% 40.7% 29.3% 25.2% 49.2%
Low 0.9x 0.7x 0.4x 0.0x 344 36.5% 8.0% -2.4% -0.8% -1.0%