LinkedIN Wants $13 Million More. Why?

Early this morning I received an email with a this link to an article claiming that LinkedIN is in negotiations to raise another $13 million in venture capital. This struck me as kind of odd. LinkedIN claims it has been profitable since March of this year which means they aren’t burning a ton of cash. It seems likely that before they turned profitable they would still have had money left from their previous venture rounds. In addition, it is unusual for a company to be publicly talking about this before the deal is done. So why would LinkedIN want to raise another $13 Million? I think there are two possible reasons:

1. LinkedIN is just trying to publicly display their valuation for a possible acquisition.

2. LinkedIN has plans to go balls to the wall in 2007.

[tags]Social Networking, Social Network, Social Media, LinkedIN, Linkedin.com, Venture Capital[/tags]