There is news, and then there is news that is nothing less than a startup fairytale. When it is about the latter that is in context, there are few ventures that qualify. Clubhouse is one such app-based company that is pulling it off.
A few months ago, this voice chat app had almost zero users- in other words, it did not exist. All it has at present are less than 5,000 users on the beta version of the app. Potential app users need to join a waitlist through a Google form, because the app is not currently available on the Play Store.
And now, after a funding round that brought two of the most renowned venture capital firms in the Silicon Valley face to face, suddenly the valuation of Clubhouse is a staggering $100 million. The startup has secured a Series A funding round from the famous Andreessen Horowitz, which includes $10 million in primary capital and around $2 million in secondary shares. This is what has propelled Clubhouse to its $100 million valuation.
With the deal now in place, Andrew Chen, partner at Andreessen Horowitz will now be joining the board at Clubhouse. If we see the situation of this funding, it is unusual as Clubhouse does not have a large size or maturity enough to raise such a large amount of funding.
Interestingly, however, Clubhouse has always been a favorite with venture capitalist investors. Partners from Horowitz have tweeted time and again about Clubhouse as it is.
But what exactly is Clubhouse? It is an app that allows users to join virtual chat rooms and listen to the conversations of others without any interruptions. If interested, a user can raise a hand or get a tap from the other participants to take part in the discussions.
In the coming times, the Clubhouse app will have to prove to become an app worth the investment. The app will have to become a social media hit and take its users by surprise. Clubhouse will have to continue being popular even post the COVID19 lockdown in order to stick to its worth.
In the meantime, the Clubhouse app is going big in terms of investment and connections. Hopefully it stays the same in the future and creates an entirely new platform for users.
