Why LinkedIn Acquired This Dorm Room Startup

LinkedIn Acquired this Business

Why LinkedIn Acquired This Dorm Room Startup

While still a student in university, Harpaul Sambhi had an idea about how to leverage social media networks as a recruiting tool, and Careerify was born. Bootstrapping the business himself, Sambhi reached out to his dad for financial support, and his dad signed over the value of their family home to his son’s vision. 

Founding Careerify in 2009 right in the middle of the economic downturn, when companies were laying off employees by the thousands, forced the fledgling startup to pivot. They were struggling to scale the business and were only 8 days away from bankruptcy when they signed their first big customer.

Careerify began attracting clients like Deloitte, Unilever, and SpaceX, and within a year and a half, they went from $0 profit to millions. This rapid growth prompted Sambhi to put out feelers for “stronger alignment” with some of his contacts, and after receiving four Letters of Intent, he sold Careerify to LinkedIn in 2015. 

In this episode, you’ll learn:

  • How to recognize when it’s time to pivot your product offering
  • Why worst-case scenario planning is an essential tool for your business
  • How to use acceleration clauses and earn-out terms to safeguard your exit

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