A LinkedIn tipster tells us that even as the all-business social network raised $53 million from Bain Capital and other investors in June, at a $1 billion valuation, it sought to pull in another $25 million from Goldman Sachs and failed. More damningly, he claims that CEO Dan Nye lied on-air when he told Fox Business earlier this summer that the company is profitable. Inside the company, it's known that LinkedIn has "now missed every financial objective set by Bain Capital after investing in us." The missed targets are not a secret, the tipster tells us, because paranoid managers spend a lot of time blaming each other in front of the minions. "It's a shame, "our tipster writes, "because it was a good company before it became so full of false confidence that it passed on the window of opportunity that was there to sell for good money." The best bit: LinkedIn now has its own commuter bus, like Google and Yahoo, running from San Francisco; it's not widely used by employees, so some joke that the bus exists so managers can throw colleagues under it. The full rant:
In the last 3 months the flying bullshit has gotten so thick that all of us below senior management have started to be able to systematically disprove half of what management tells us. Even management themselves change things they had formerly declared as factual. If you ask any of the top three managers what our strategy is for an open API vs. threats from Google etc they will all three give you a different answer. Wait a week [and] ask again and then they all give new different answers. We miss our objectives on every feature add, interface change, hardware move and anything else management declares. LIAP is a non-scaling disaster. Worst of all we have now missed every financial objective set by Bain Capital after investing $50M in us. Not once but twice we have missed revenue and bottom line goals. The debate about who's fault this is is lively enough that one can tickle each manager for trouble and they will throw each other under the LinkedIn bus. (By the way management got a minibus to ferry almost no one to work from San Francisco because Google does it, (CEO penis envy) but the staff joke that the bus is to throw people under in this culture where the PR is hot but the business is not) Missing numbers is not a secret, management stood up at an off-site in Monterey and said "we are going to every group and telling them the facts that we missed our goals again and that Bain is really mad" This is really comforting to the staff when the next day the same guy is on CNBCs websit saying we are profitable (not even close). The only thing we seem good at doing on time is spending too much money. Management told us this summer that Goldman Sachs was investing $25M more in us and the details would be forthcoming. (said it was a done deal) (scared to death that we would need this) well I just learned GS said NO! 2 months ago, management just hasn't bothered to tell us. It's a shame because it was a good company that had endured enough before it became so full of false confidence that it passed on the window of opportunity that was there to sell for good money.