Linked Your network is bigger than you tik Series B August 2004 ‘August 2004 CONFIDENTIAL Linked sermons oper ton Find and Contact the People You Need Through the People You Already Trust August 2004 ‘CONFIDENTIAL LinkedIn Is Professional People Search 2.0 Linked sermons oper ton Professional people search includes 3 key components Linkedin premium services 1, Targeted ads: Contextual text ads targeted on search terms and profiles Oo ® Listings: Job listings ftered through each professional's network (1) +—— (8), + Subscriptions: ® gs @ Service extending reach of each professional's network August 2004 CONFIDENTIAL Professional People Search 1.0 Uses Flat Directories Linked sermons oper ton The problem: There is no effective, trusted way for professionals to find and transact with each other online + Selecting service providers from yellow pages fails + Selecting employees from resume databases fails + Reaching professionals through directories fails August 2004 ‘CONFIDENTIAL Professional People Search 2.0 Leverages Networks Linked orton soprano Internet 1.0 = Search and transact via flat directories Internet 2.0 = Search and transact via networks TA ‘August 2004 CONFIDENTIAL eBay: Online Goods Listings 2.0 Linked termet Stay try Goods Listings 1.0: Goods Listings 2.0: Online Classifieds eBay eer ny Assess seller's reputation by looking at Assess seller's reputation by looking at each individual seller’s claims network of transactions between users August 2004 CONFIDENTIAL PayPal: Online Payments 2.0 Linked nomena ree Online Payments 1.0: Online Payments 2.0: Citibank et al PayPal as citi Paral Detect fraud by looking at Detect fraud by looking at each individual’s behavior in isolation network of transactions between users ‘August 2004 CONFIDENTIAL Google: Search for Things 2.0 Linked ee | Search for Things 1.0: Search for Things 2.0: Altavista Google vista: 4 alta Google Rank search results by looking at Rank search results by looking at each individual page in isolation network of links between pages ‘August 2004 CONFIDENTIAL LinkedIn: Professional People Search 2.0 Linked orton soprano Professional People Search 1.0: Professional People Search 2.0: Monster, Lexis Nexis, et al Linkedin monster Linked] Assess professionals by looking at Assess professionals by looking at each individual's claims network of relationships between users August 2004 CONFIDENTIAL Establishing the Network: Our First Priority wmaiinked| For eBay, PayPal, Google, and Linkedin, the key is the network Where the network is the key, the winner takes all PayPal waited until 4 million registered users before turning on revenue — today, revenue is $400MM+ August 2004 ‘CONFIDENTIAL Network Growth: Commitment from Series A Linked sermons oper ton Growth projection (203) [ELLE SLED EE August 2004 CONFIDENTIAL 10 Network Growth: Success Linked orton soprano —— retual data, 5103-present nooo Growth projection (203) OLEEEDEELILESSELEEDISES I “Linkedin has quickly become the Internet’ jest online business network.” Forbes| “Linkedin is the most strict about keeping its site SrinsOGr solely for professional, business purposes.” 41 LinkedIn Will “Win and Take All” orton soprano Registered users of online professional network tools February 2004 (Total = 0.3 Million) spoke ZeroDegrees pense (6%) ("%) aut others (6%) Ni (3%) Linkedin (64%) [Non-Linkedin numbers are estimates based on best available intelligence ‘August 2004 CONFIDENTIAL LinkedIn Will “Win and Take All” Linked orton soprano Registered users of online professional network tools ‘August 2004 (Total = 1.2 Million) Spoke ZeroDegrees pense (2%) ("%) aut others en April 2004 No competitor is even close to Linkedin’s rate of adoption Linkedin (73%) Linkedin’s share has increased from 54% 6 months ago to 73% today Tipping point effects mean Linkedin's share will continue to increase [Non-Linkedin numbers are estimates based on best available intelligence ‘August 2004 CONFIDENTIAL 13 LinkedIn Already Dominates the Competition Linked sermons oper ton ‘Numbers 2s of 8/04. Non-Linkedin numbers are estimates based on best avalable intelligence. Internet Service mode! Enterprise Software model lattes +=2500,000 users Plus 10+ “Friendster clones” fst 2004 /orkur +1,90,000 users ont Ds tribe.net 80,000 users "19 months old ZeroDegrees ‘Social focus Professional focus 14 Growth Includes Major Groups Providing Strong Brand Endorsement JKE| Ee ES mw Major conferences CONNECT Top-tier professional organizations “Red Herring chose Linkedin for Groupe asthe professional network too for our conference to allow atfndees 1 create lasting relationships and to promote Rl Hering to Linkedln's hundreds of thousands of high-qualty professional users” Florian Brody, Director of Business Development, Red Herring ‘August 2004 CONFIDENTIAL Linked orton soprano ‘Additional Groups live since launch in April 2004 Additional Conferences + Supemova + Blogon Additional Alumni Groups (mostly class-level) + Haas School of Business MIT TechLink Mayfield Fellows Camegie Mellon University of Washington Additional Professional Groups Chinese Software Professionals Association InterFrench Industry Standard Internet Executive Group Press Club of California PDMA NorCal Association of International Product Marketing and Management Additional Corporate Alumni Groups + Sun Microsystems Alumni Association, + HP Alumni Association Plus more than 50 other similar Groups 15-20 new Groups added per month 15 Strong Results With Less Than $4 Million Spent Linked sermons oper ton Large user base ‘930K+ white-collar registered users 29K+ weekly user growth rate 23M+ unique email addresses uploaded Groups. 50+ Groups live 20+ new Groups launch per month 300+ Groups in pipeline High-quality users 22% of users are CxOsisenior execs 100+ countries: 130+ industries Desktop (not promoted) 6K+ IE toolbar installs 18K+ Outlook toolbar installs 2.5M email addresses uploaded via toolbar Increasing usage levels 20% of old users log in per month ‘IMs user searches per month 20M+ total member page views per month Business development DirectEmployers Association American Express OPEN (at contract) 10+ new inbound opportunities per week August 2004 CONFIDENTIAL Great Inbound Business Development Linked sermons oper ton ‘Search 240,000+ Jobs. ‘And use your network to land one. Linked) tnetoyes Sense ee ei: yn py gt yt OPEN™ at + Dominant non-profit consortium of Fortune 500 HR departments and university career centers + Fourth-largest job database online + Two-year exclusive agreement launched August 2004 CONFIDENTIAL + Exposure of Linkedin to 2 million American Express small business cardholders + Strong brand endorsement of Linkedin + Currently at contract 7 LinkedIn’s Market-Leading Position Creates Strong Barriers to Entry + Inherently viral product design with tipping point effects Ensures continued leadership in size of user base + Reputation system and network of relationships between users Enables very strong network effects and user trust * 2 key patents in viral marketing and “social networking” 1 granted, 1 pending with 1999 priority date ‘August 2004 CONFIDENTIAL Linked orton soprano 18 The Network Enables Revenue Linked orton soprano Value of the network Revenue model (high-level) eby + Network-based reputation system creates + eBay takes % of transaction trust: key to high transaction volume + Reputation system is not directly monetized [REXAPREI * Network-based fraud detection system + PayPal takes % of transaction makes the business economically viable Fraud detection is not directly monetized + Network-based page rank system + AdWords are shown in search results oogle 3 produces best search results + Page rank system is not directly monetized ..-and of course, user-based network effects are key to making the business invulnerable ‘August 2004 CONFIDENTIAL 19 The Network Enables Revenue Linked orton soprano Value of the network Revenue model (in detail) Linked[f] Network-based reputation system + 4, InLeads: contextual search text ads ~eeeeniS creates trust: key to high transaction volume and utility + 2. Opportunities: network-filtered job listings + 3. Network Plus: network-extending subscription + Reputation system is not directly monetized (Universal service stays free for all users) Building the network is the challenge, and Linkedin has the foundation “Executives should try Linkedin. At best, it could be incredibly useful. At worst, the site guards your privacy and doesn’t waste your time.” “Linkedin could change the way executive recruiting is conducted.” January 2004 ‘August 2004 CONFIDENTIAL 20 The Network Enables Revenue Revenue: Network: August 2004 CONFIDENTIAL Linked veurmamentrbopertanor 21 LinkedIn’s Market Opportunity Is Large Linked sermons oper ton Comparables Comparable market sizes (2004) + Google AdWords for people + Search ads: $2.88 + Lexis-Nexis for services + Lexis-Nexis: $2.38 + Yellow pages/directories + Offline yellow pages, directories, and local ads $10B+ + Monster et al + Job sites: $0.88 (excluding + Classifieds classifieds) + Match.com et al + Personals sites: $0.68 Sources: SEC flings, Searchonginawatch com, Kelsey Group, Mediacoanection, Goldman Sachs, Maretdta Enorises, CBS Marketa ‘August 2004 CONFIDENTIAL 1. LinkedIn InLeads Does for Professionals What Linked Google AdWords Does for Products orton soprano Search Results ‘Sponsored profiles (a) Andy Brandt a ow svASE nemo {reave consurtant & envoprenewr Sofie Leonard Ine inomaton Tecnay ae Sevees nus Foard commie Dame Does Eureny Omer arr TL Dempster tn omparles TTC; Pasa TeltonlaCytowa: Unisys: 1 Ans: Software: Eusot Warsaw Unversy, Depo Mats and CS PPT PAD TT consuttantproec manager win expeencem eunness, mene Solitons Consutant at Unisys Coneutancanays aap Anaya 8 8 Eonsunant-aveor tothe Gene “t've closed over $100K worth of business so far, and currently sonpees ony have $400K of deals in the Dane Oye consign Computer Sofware Constant Pipeline, thanks to Linkedin.” inte Comper sotwarensusty Sn Francuce Say ea ance: Sermvos = Todd Defren, SHIFT ‘mans Oyen coring —_* Communications: ‘Owner a Dye consutig Andrea Or 2 sees away \wrtng and Eating Consultant and Profesional Inthe rang ana Eating ncusty San Francisco Bay zea —_ ‘Coorcnatod coverage o hardware, software and inemet inausties he coverng breaing news and wring 8 weeky column Nat ‘hoi the decom Boom ana subsequent Bust Kevin Babcock 2 degrees nay aN ‘August 2004 CONFIDENTIAL 23 1. Market for InLeads: Linked| Search Advertising Is Large and Growing Fast eae ac Online advertising markets ($ Millions) $10,000 $0,000 bashed $7,198 $7,267 $7,000 $6,000 $5.00, $5,000 $4,000 $8,000 $2,000 $1,000 so | 2000 2001 2002 20036 20046 Search Core online advertising Classifiedsilistngs D.e-mail ‘Sources: PiceWaternouseCoopers, Goldman Sachs ‘August 2004 CONFIDENTIAL 24 2. Linkedin Opportunities Lets Users Leverage Their Network to Hire Linked orton soprano Network-flltered job postings SS elt Senior ava Engineer Network-filtered backdoor reference checking @Search Results Hiatt | Som ‘Maat Genes Cove woe ——- shi tani Ponte pene SiityearmenesGom — tarmenee Uitinad macs topes ae ‘August 2004 CONFIDENTIAL 25 2. Reputation-Based Prioritization of Candidates Saves Time and Money Linked orton soprano “Iused Linkedin to search for a Marketing VP and saved $30,000 Iwould have otherwise paid a headhunter.’ ~ Anonymous CEO (quoted in Forrester report, July 2004) “Linkedin helped me to easily find and contact 10 product managers, one of whom | ended up hiring. Linkedin saved me a significant amount of time and ~ Jeremy Liew, GM, Netscape (hire placed in Columbus, OH) “Through Linkedin | was able to find the perfect match for a sales manager opening, and it ‘saved us over $20,000 in search costs.” = Adam Honig, CEO, Akiba (New York, NY) ‘August 2004 CONFIDENTIAL 26 2. Market for Opportunities: Linked! Existing Online Job Markets Are Large But Inefficient = ~=-=*** Revenue (2004E, $M) Average Unique Monthly Visitors (M) Monster 515 182 + Online job market is Careerbuilder 175 14.5 (across Careerbuilder network) already large + Linkedin is not Yahoo! HotJobs 94 126 only about jobs: enables lifetime user Linkedin na 0.3 (up from 0.1 6 months ago) relationship and better results for “Employers will increasingly tap Linkedin’s rich profiles to find passive job f foeresr] candidates rather than pay Monster to access its resume database.” July 2004 ‘Sources: Goldman Sachs, Forester ‘August 2004 CONFIDENTIAL a 3. Linkedin Network Plus Gives Power Users Extended Reach User without Network Plus: Visibility limi Linked orton soprano Qsearch Results “Lwas contacted by a CNET ‘executive who referred me to a hiring manager in his group. | ‘was offered a position. LinkedIn has been an invaluable career to% ~ Don Marzetta, Director of ‘Vendor Integration, CNET “Iclosed business with the CEO of a major software company.” ~ Raj Sardesh, Principal, ProductMilestones “We used Linkedin contact requests to engage and secure ‘two great conference speakers.” ~ Jeff Clavier, Managing Partner, SoftTech VC 3. Market for Network Plus: Linked| Large Online Personals Market Provides Comp So Soto parsons aT a ae ae ae SaaS Sa Es ees | ‘Sriins Poreona pana par eS US Sagas eee | “Linkedin has taken referral-based job hunting to the next level.” jJusnews| March 2004 ‘Sources: Goldman Sachs, Marketdata Enterprises ‘August 2004 ‘CONFIDENTIAL Revenue Is Near-Term Linked sermons oper ton Pricing plan (preliminary) Launch timing + Remains free (large user base is + Already live key revenue-generating asset) CPC pricing set by free market auction + 1105 ‘CPM pricing $3-$10 depending on category EOI (lead generation) pricing $25+ + $79 per listing (remains open for 30 days) + 11/04 + Price levels increase post-2005 + $5.95 per month or $59.95 per year + 1105 + Price levels increase post-2005, ‘August 2004 CONFIDENTIAL Internet 2.0 Business Model: Linked| High Revenue and High Margins ipaiecirieres + Great revenue potential for InLeads, Opportunities, and Network Plus Law of large numbers ensures high revenue * Very high operating margins Free customer acquisition, digital goods transactions with zero incremental cost Operating margins virtually breakeven even for universal free service + Execution difficulty decreases as LinkedIn locks down user base dominance Hardest part is building large, high-quality user base ‘August 2004 CONFIDENTIAL 31 Series B Brings LinkedIn to Operating Profitability in 2005 Key assumptions in Linkedin model Macro assumptions Monthly user growth of 3%-13% (below current levels) Monthly usage growth rate of 5%-10% (below current levels) InLeads (search ads) assumptions CPMs priced at $3-$5, CPCs priced at $1 (both well below comps) Clickthrough and conversion rates of 0.5%-2.75% ‘Opportunities (listings) assumptions Listings pricing at $79 Network Plus (subscription) assumptions ‘Subscription rate of 0.5%-3.0% (high end of range not until 2007) ‘August 2004 CONFIDENTIAL Linked orton soprano 32 Series B Brings LinkedIn to Linked Operating Profitability in 2005 eur mors oper than you tn '5-Year Financials $ Thousands S.YEAR FINANCIALS Cashfow from Operations iow fm Financing INet Cash Position EOY) August 2004 CONFIDENTIAL 33 Business and Tech Team Has Strong Track-Record Linked orton soprano Reid Hoffman, CEO + Former EVP and Founding Board Member, PayPal + Investor in Friendster, Ironport, Six Apart, Vendio et al Sarah Imbach, Chief of Staff and VP + Former SVP Operations, PayPal Allen Blue, VP of Product + Former Director of Product Design, SocialNet.com Jean-Luc Vaillant, VP of Engineering + Former Director of Engineering and Software Development, Logitech, Spotiife Konstantin Guericke, VP of Marketing + Former VP of Marketing, Presenter, Blaxxun Eric Ly, CTO + Founder and former CTO, Netmosphere (sold to Critical Path) Matt Cohler, Director of Corporate Development + Former top-ranked analyst at McKinsey, marketing at Asialnfo, published in HBR Technical team with experience at Apple, Cisco, Hotwire, Citigroup, Sprint, TIBCO, VERITAS, et al ‘August 2004 CONFIDENTIAL 34 Board and Other Investors Are Linked Sequoia and Top-Tier Angels eur mors oper than you tn Reid Hoffman + CEO of Linkedin + Former EVP and Founding Board Member, PayPal; leading angel investor Mark Kvamme + Partner, Sequoia Capital + Former CEO and Chairman, CKS Group Rob DeSantis + Former CMO and Co-Founder, Ariba Additional angel investors (not on Board of Directors) + Peter Thiel, Co-Founder and Former CEO, PayPal Marc Andreessen, Co-Founder and Former CTO, Netscape Joe Kraus, Co-Founder and Former SVP Marketing, Excite Andrew Anker, Former CTO, Wired and Former Partner, August Capital Gil Penchina, VP International, eBay ITAL Linkedin Series A $4.7 Million November 2003 ‘August 2004 CONFIDENTIAL LinkedIn is Well-Positioned to Linked Dominate an Essential Market eran toon ten ys Ba * High-margin billion-dollar opportunity + Clear market leader in a defensible space * Strong team and strong execution on less than $4M spent August 2004 ‘CONFIDENTIAL Linked sermons oper ton Find and Contact the People You Need Through the People You Already Trust August 2004 ‘CONFIDENTIAL 37 Linked sermons oper ton APPENDIX August 2004 ‘CONFIDENTIAL A Better Way to Find Professionals Online Linked August 2004 ‘CONFIDENTIAL 39