Linked Your networ is bape tan you tink Series B August 2004 ‘August 2004 CONFIDENTIALLinkedin Is Professional People Search 2.0 Linked euro Zope tanya Professional people search includes 3 key components Linkedin premium services 1. Targeted ads: Contextual text ads targeted on search terms and profiles @ © 2. Listings: Job Iistings ftered through each professionars network) +— S) Subscriptions: (©) se @ Service extending reach of each professional's network August 2004 CONFIDENTIALProfessional People Search 1.0 Uses Flat Directories = _. Linked ton Saget yr 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 ton Saget yr Internet 1.0 = Search and transact via flat directories Internet 2.0 = Search and transact via networks ‘August 2004 CONFIDENTIALeBay: Online Goods Listings 2.0 Linked euro Zope tanya Goods Listings 1.0: Online Classifieds The Phitdetpia oi Assess seller's reputation by looking at each individual seller's claims Goods Listings 2.0: eBay abv Assess seller's reputation by looking at network of transactions between users August 2004 CONFIDENTIALPayPal: Online Payments 2.0 Linked euro Zope tanya Online Payments 1.0: ‘itibank et al citi Detect fraud by looking at each individual's behavior in isolation Online Payments 2.0: PayPal Detect fraud by looking at network of transactions between users August 2004 CONFIDENTIALGoogle: Search for Things 2.0 Linked meen Search for Things 1.0: Search for Things 2. Altavista Google vista: F 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 vorrament bap tan on 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 Linked For eBay, PayPal, Google, and Linkedin, the key is the network Where the network is the key, the first mover is critical to revenue 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 euro Zope tanya Growth projection (03) !ELEEEIIEE ELLE LLIEEES SELES August 2004 CONFIDENTIALNetwork Growth: Success Linked vorrament bap tan on —— Actual data, 08 present SOLE LD LEE LE LESSEE S Growth projection 03) “Linkedin has quickly become the Internet's largest online business network.” “Linkedin is the most strict about keeping its site solely for professional, business purposes.” ‘March 2004Linkedin Leads this Market Registered users of online professional network tools February 2004 (Total = 0.3 Million) spoke ZeroDegrees Opensc (6%) (1%) an others om \ | en Ryze (32% ~ Linkeain (64%) NonLinkedla numbers are estimates based on best evailable intaligence August 2004 CONFIDENTIAL 12Linkedin Has Grown Its Lead Yermnerbaprtan out Registered users of online professional network tools ‘August 2004 (Total = 1.2 Million) spoke ZeroDegrees Opensc (2%) (1%) an others my \ | em Apidae Linkedin nas highest rate of adoption Linkedin Linkedin’ s share has increased from (73%) 54% 6 months ago to 73% today Tipping point effects mean Linkedin’ s share will continue to increase August 2004 CONFIDENTIAL baced on est vailabe intelligence 8Linkedin is the Market Leader Linked aroma sage tony na ‘Numbers as of 804. Nen-Linkedln aumbers are estimates based on best availabe intelligence ] | “etsontens g &|) fabnvceecs E 2 Plus 10+ “Fiendster clones” 3 { g “Bronte a 3 ~ iy eee 3 Qoorwene visiblepath 3 5 BRANCHIT a ‘Social focus Professional focus 4Growth Includes Major Groups Providing Strong Brand Endorsement Linked vorrament bap tan on Leading MBA programs and MBA alumni Ea mw Major conferences ‘Top-tier professional organizations “Fed Hering chose Linkedin for Groupe asthe professional lasing relationships and to promote Red Herting to Lirked hundreds of theusands of high-uattyprefessional uses." Florian Brody, Director of Business Development, Red Herring ‘August 2004 CONFIDENTIAL CONNECT Eryn, eRe ‘Additional Groups live since launch in April 2004 Additional Conferences + Sugerova + BlogOn ‘Additional Alumni Groups {mostly class-level) Has School of Business MIT TechLink Mayfield Fellows Camegie Mellon University of Washington Additional Professional Groups + Chinese Sonware Protessionals 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 euro Zope tanya Large user base ‘930K+ white-collar registered users 29K+ weekly user growth rate 23N+ 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 CxOs/senior execs 4100+ countres 130+ industies Desktop (not promoted) K+ IE toolbar installs 18K+ Outook toolbar installs 2.5M email adcresses uploaded via toolbar Increasing usage levels 20% of old users jog in per month ‘IM+ user searches per month 20M+ total member page views per month Business development DirectEmpioyers Association ‘American Express OPEN (at contract) ‘10* new inbound opportunties per week August 2004 CONFIDENTIAL 16Great Inbound Business Development Linked euro Zope tanya ‘Search 240,000+ Jobs. = vo =a) ‘And use your network to land one. ‘OicEimployers Linked| ya lp yp OPEN" at Linkedin + Dominant non-profit consortium of Fortune 500 HR departments and university career conters + 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 ”Linkedin’ s Market-Leading Position Creates Linked Strong Barriers to Entry erm bapr tan yoo nt + Inherently viral product design with tipping point effects Promotes ongoing market leadership + 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The Network Enables Revenue Linked vorren bape tan ont 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 PREPAPELT * Network-based fraud detection system - PayPal takes % of transaction makes the business economically viable Fraud detection is not directly monetized Goo: le + Network-based page rank sysiem + AdWords are shown in search results Ie produces best search results * Page rank system isnot citecly monetized pr t ys iy -and of course, user-based network effects are key to making the business valuable August 2004 CONFIDENTIAL 19The Network Enables Revenue Linked vorrament bap tan on Value of the network Revenue model (in detail) inked] + Nework-based reputation system + 1. InLeads: contextual search text ads ee creates trust: key to high transaction volume and utility + 2. Opportunities: network-fitered job listings 3. Network Plus: network-exiending 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 euro Zope tanya aLinkedIn’s Market Opportunity Is Large Linked Comy + Google AdWords for people + ~—‘Search ads: $2.88 + Lexis-Nexis for services + Lexis-Nexis: $2.38 + Yellow pagesidirectories + Offline yellow pages, directories, and local ads $108+ + Monster et al + Job sites: $0.88 (excluding + Classifieds classifieds) + Match.com et al + Personals sites: $0.68 Sources: SEC tings. Sarcheninewatch. com. Kelsay Group.Matiaoanection, GGolanan Sach, Mattel Ertorises, CBS Martwach ‘August 2004 CONFIDENTIAL1. LinkedIn InLeads Does for Professionals What Google AdWords Does for Products Linked euro Zope tanya Search Results [Gait] Andy Brandt atow VAS meron Create corsuttan: &enteprenew nina intormatonTecmnooy and Sands nut, Pena omar TT. Foa Tekeona Cyteus: Unsys: Ans: Sofware soft Warsaw Unversy, Dept of Mats and GS PFT PAN “Tt conultantproje manage wit experence ne-busness, noowe Selisons Consultant at Unis Consultantanas tpi Alt 288 onstant saver t be General RobertDy 2cegeesamay : ‘Garner, Ojesconsutng and Computer Software Consuitant 4, Inthe Computer Stare nausty. San Francico Bay Nea {Cure Owner atDyeo consulting ‘Companio: Byes eenesirg ‘Owner at Djeoconsuieg Andra Orr 2epees any |r and Eating Consutant ard Professional Inthe vrig an eating aust San Franco Bay ea ‘Coordnated coverage of araware, software and neret incase whe covers beating news and wring a weeky cola thet ‘rons the get com boom ana aubreguer: bust Kevin Babcock 2degreetaway TA August 2004 ‘CONFIDENTIAL 231. Market for InLeads: Linked| Search Advertising Is Large and Growing Fast een Online advertising markets ($ Millions) $10,000 $9,000 $8,000 $7,000 + $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0. 2000 2001 2002 2003 2004 Search Core online advertising Classifiedslistings e-mail ‘Sources: PriceWaterhouseCoapers, Godman Sachs ‘August 2004 CONFIDENTIAL 242. Linkedin Opportunities Lets Users Linked Leverage Their Network to Hire earned bape ton you na Network-iltered job postings 1 cee eS =~ 2 on @ search Results Piatto sonar ewan topes tiem Gocesomeeee Sopeman Sintecimercronconee omy tegen Sidkeasnmncn rapa Ouy Sgn ‘August 2004 CONFIDENTIAL 252. Reputation-Based Prioritization of Candidates Saves Time and Money Linked vorrament bap tan on “| used Linkedin to search for a Marketing VP and saved $30,000 Twould 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. effort.” 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. cost = Adam Honig, CEO, Akiba (New York, NY) ‘August 2004 CONFIDENTIAL 262. Market for Opportunities: Linked Existing Online Job Markets Are Large But Inefficient = ~=>r"se=~~! Revenue (20046, $M) __ Average Unique Monthly Visitors (M) Monster 515 182 + Online job market is Careerbuilder 175 14.5 (aoroas Careorbuilder network) already large + Linkedin is not Yahoo! HotJobs 94 126 only about jobs: enables lifetime user Linkesin 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 Sp candidates rather than pay Monster to access its resume database.” July 2004 ‘August 2004 CONFIDENTIAL a3. LinkedIn Network Plus Gives Linked Power Users Extended Reach eee Usor with Notwork Plus: Visibility out to 4 QSearch Results “Iwas contacted by a CNET executive who referred me toa hiring manager in his group. | “1 closed business with the CEO is uses Liesl oma ]was offered a position. Linkedin ‘of amajor software company.” acpests fe mono shel were has been an invaluable career = Raj Sardesh, Principal, Ba eos aero cami tool.” roductMilestones : a }-- Don Marzetta, Director of Partner, SoftTech VC Vendor Integration, CNET 83. Market for Network Plus: Linked Large Online Personals Market Provides Comp Neoreen eerie “Linkedin has taken referral-based job hunting to the next level.” (S55 March 2004 ‘Sources: Goldman Sache, Marketdsea Enterprises ‘August 2004 CONFIDENTIALRevenue Is Near-Term Linked euro Zope tanya Pricing plan (preliminary) Launch timing + Remains tree (large user base is + Aready ive key revenue-generating asset) + CPC pricing set by free market auction + 105 + CPM pricing $3-810 depending on category + EOI [bad goneration) pricing $25+ + $79 per listing (remains open for 30 days) + 1104 + Price levels increase post-2005 + $5.95 per month or $53.95 per year + 105 ‘August 2004 CONFIDENTIAL Price levels increase post-2005Internet 2.0 Business Model: Linked| High Revenue and High Margins Seen + 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 grows the network Hardest part is building large, high-quality user base August 2004 CONFIDENTIAL 4Series B Brings LinkedIn to Linked Operating Profitability in 2005 earned bape ton you na 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% n Opportunities (listings) assumptions Listings pricing at $79 3. Network Plus (subscription) assumptions + Subscription rate of 0.5%-3.0% (high end of range not until 2007) ‘August 2004 CONFIDENTIAL 32Series B Brings LinkedIn to Linked Operating Profitability in 2005 verre bapr tans '5-Year Financials tho Tistorial Conservative projections BT $ (ose § 1208 $ ~$ 274 § 93 531% August 2004 CONFIDENTIAL 33Business and Tech Team Has Strong Track-Record Linked vorrament bap tan on 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, Spotife Konstantin Guericke, VP of Marketing + Former VP of Marketing, Presenter, Blaxxun Eric Ly, CTO + Founder and former CTO, Net mosphere (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Board and Other Investors Are Linked Sequoia and Top-Tier Angels earned bape ton you na Reid Hoffman + CEO or Linkeain + 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 Can Linkealn Series A ‘$4.7 Million November 2003 ‘August 2004 CONFIDENTIAL 35Linkedin is Well-Positioned in Linked an Essential Market ‘errant operon a + 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 euro Zope tanya ‘Sia Find and Contact the People You Need Through the People You Already Trust August 2004 ‘CONFIDENTIAL