LinkedIn

LinkedIn

Connections are key


Founder: Reid Hoffman





Age of founder: 35


Background: Technology and product development


Founded in: 2003, USA


Headquarters: California, USA


Business type: Professional networking site




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here's an old saying in business: it's not what you know but who you know. LinkedIn set out to make this a reality in the online world, creating a site aimed at helping professionals connect with each other. Set up in 2003 in the wake of the dot-com crash, the business survived a harsh economic climate and became profitable four years after launch. Today the company has more than 51 million members in over 200 countries and it is reported that someone joins LinkedIn every second.



Technology guru


Reid Hoffman grew up in California, and it seems ironic now that during his childhood his father never let him have a computer, thinking it was irrelevant. It wasn't until Reid went to college, where he studied artificial intelligence and cognitive science, that he got one. In the early 1990s, he won a scholarship to study philosophy at Oxford University, but after a year he realised that the world of academia was not for him. Instead, he had a few ideas for technology-based businesses, one of which was a personal information manager for a hand-held device. Convinced his idea had potential, he networked his way to meeting two venture capitalists. They didn't turn him down flat but advised him to get some experience producing and selling products, and then come back.


Following their advice, Reid sought a job at a high-profile technology company. He landed his first job at Apple in 1994, again using his networking skills (he had heard about an opening in software development through the flatmate of a university friend and applied to the company direct). Nearly two years later, he left Apple for a job at Fujitsu, this time in product management and business development.


During this time, Reid always planned to work for himself one day. His aim was to develop his experience, skills and confidence and prove to the venture capitalists that he was taking them at their word. At both companies, he set himself a strict timeline and mapped out the areas he needed to master before he could strike out on his own, including design and product management, building a team, and producing and selling products successfully.


Reid always planned to work for himself one day. His aim was to build up experience, skills and confidence and prove to the venture capitalists that he was taking them at their word.





In July 1997, Reid quit his job at Fujitsu to set up Socialnet, one of the earliest versions of a social networking site. He'd thought up the concept of social networking long before most people had started using the internet at all. The aim of Socialnet was to build on the kinds of relationships that people have, as a way to identify potential dates, flatmates or even tennis partners. The idea was to put users 'near' the people they'd be interested in, but online. The right person for you could be in the next building, but you'd never know it: everyone would be connected online, so physical locations did not matter.