By Scott Austin
Bain Capital Ventures is giving its limited partners some LinkedIn liquidity as it looks to raise a new venture capital fund.
It’s nearly been six months since LinkedIn’s IPO on May 19 on the New York Stock Exchange, and that means its institutional investors can start dumping their shares.
As soon as LinkedIn’s six-month post-IPO lockup period expires next Monday, the venture firm is dumping its entire 4.3% stake, or 3.7 million shares, through a secondary offering. That would net the firm roughly $277 million based on LinkedIn’s closing price of $74.86. Bain, which co-led LinkedIn’s $76 million Series D round in 2008 at a valuation of just over $1 billion, already sold $29.4 million worth of stock in the IPO at a price of $45.
So it will likely gain more than $300 million altogether on behalf of LinkedIn, whose market capitalization currently stands at more than $7 billion. The sale doesn’t necessarily mean Bain believes LinkedIn has a bleak future. Venture firms’ decisions to sell post-IPO stock or distribute shares to their limited partners vary depending on what the LPs want.