Reid Hoffman, the founder and chairman of business social networking site LinkedIn, is stepping down from his other role as CEO and will hand the reins to Advent Software executive Dan Nye, Reuters reported. Hoffman posted comments on the move in his LinkedIn biographical profile (registration required), saying that he plans to remain as chairman of the Palo Alto, CA-based company and take on the additional title of president of products. Before LinkedIn, Hoffman was an EVP at PayPal prior to its purchase by eBay in Oct. 2002 for $1.5 billion. Last week, LinkedIn said it had taken $12.8 million in its third round of venture funding.
Rafat adds: One of the possible reason could be the conflict of interest Hoffman has with his role as one of the most prolific angel investors in Silicon Valley. With additional funding and investors coming into the company, that may have been a factor in this move. Also, there are some expectations of an IPO later this year, and investors might have wanted a more seasoned CEO than a serial entrepreneur and investor.
Staci adds: I was looking forward to seeing Hoffman at SIIA, where he was supposed to be on a panel, but we were told he was recovering from pneumonia and couldn’t fly.
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-- Business Social Network LinkedIn Gets $12 Million Funding