Reid Hoffman and the LinkedIn Network Effect

Ian Lee Technology

" Reid Hoffman launched LinkedIn in 2003 after several career stints in PayPal and social tech. But users were scarce early growth was painfully slow, and quality connections were a struggle. "
Hoffman realized that focusing on high-quality professionals and stimulating meaningful connections would trigger network effects. Instead of mass growth, he invited only 5,000 trusted professionals to seed interactions.LinkedIn grew steadily, offering features like endorsements and InMail. It IPO‐d in 2011 and was acquired by Microsoft in 2016 for $26 billion, fulfilling its vision as the trusted professional network.

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