ByKen Schachter

Reid Hoffman may have ceded the CEO’s chair to former Advent Software executive Dan Nye, but he still has Google-size dreams for LinkedIn, the business-networking web site he founded.

“We plan to build LinkedIn into a multi-billion-dollar company and continue building products that are useful to every professional in their lives,” he said in response to questions submitted by email. “I personally initiated the search last year with the approval of the board because I am committed to us becoming one of the big Internet companies.”

The corner office shift comes as LinkedIn moves beyond the startup phase and confronts entrenched global rivals.

Whereas Mr. Hoffman’s résumé highlights innovation, such as his founding in 1997 of SocialNet, one of the pioneering online social networks, Mr. Nye’s strength has been in operations, including a stint at Procter & Gamble, a legendary breeding ground for corporate managers.

Palo Alto, California-based LinkedIn announced Monday that Mr. Nye would be succeeding Mr. Hoffman, who will stay on as chairman and president. Mr. Hoffman and Mr. Nye had telegraphed the shuffle by updating their LinkedIn profiles in advance of the official statement.

Though rapid growth is on the agenda, Mr. Hoffman said he wants LinkedIn to remain private for as long as possible.

An initial public offering is not imminent, Mr. Hoffman said, because he agrees “with the Google philosophy that you build a successful company before going public and that you wait as long as you need to achieve this.”

A graduate of HarvardBusinessSchool, Mr. Nye served as executive vice president at Advent Software and vice president and general manager of the small business division at Intuit, publishers of the personal finance program Quicken and tax prep package TurboTax.

HarvardBusinessSchool

Mr. Hoffman said that during the search process, peers, former bosses, and underlings praised Mr. Nye.

“In particular, we checked out some of the people who said they’d work for him again in a heartbeat, and those were strong ‘A’ players,” Mr. Hoffman said.

Extra Financing Helps

Though the Palo Alto, California, company already has turned profitable, in late January it closed on a $12.8-million financing round from Bessemer Venture Partners and European Founders Fund.

Palo Alto, California

That third round of funding, which brings the company’s total to $27.5 million, is designed to propel LinkedIn into new markets in Europe, where it trails German rival Xing.

Europe

Mr. Hoffman said LinkedIn does not contemplate any future venture rounds. While Mr. Nye works to build the company’s scale, Mr. Hoffman said he will focus on “innovative products, business services, problem solutions.”

LinkedIn offers a basic business networking service for free but charges for a premium subscription with more advanced services. The company also has more than 350 corporate customers, including Microsoft, eBay, Intuit, Adobe, CircuitCity, Target, and Walmart.com.

CircuitCityIn 2003, LinkedIn closed on $4.7 million in a first round of venture funding from Sequoia Capital and in 2004 got a $10-million second round from Greylock Partners.