Clubhouse Is Now Valued at $4 Billion, Thanks to Its Latest Round of Funding
Released in April 2020, the social media app has some notable users, including Oprah, Elon Musk and Mark Zuckerberg.
Clubhouse closed its new Series C round of financing, bringing the value of the audio-conferencing social media app to $4 billion, Reuters reports.
The company made the announcement at a weekly town hall on Sunday but did not reveal the specific amount of money it raised. Still, sources told the news agency that the new round of financing, led by Andrew Chen of venture capital firm Andreessen Horowitz, would raise the social media app's value to $4 billion — tripling its valuation since January. Other investors in the latest round include DST Global, Tiger Global and Elad Gil.
According to TechCrunch, the new series of funding comes as major companies like Facebook, Twitter, Spotify, Discord and LinkedIn all prepare to launch their own versions of Clubhouse's live audio-streaming rooms. In fact, in recent months, Twitter was in talks to acquire the San Francisco-based startup at a $4 billion valuation before discussions broke off, Bloomberg notes.
Related: How to Get Invited to Clubhouse
Released in April 2020 and developed by Alpha Exploration Co., Clubhouse is an invitation-only social media app that hosts virtual rooms for live discussions. In a short period of time, its user base has grown to 10 million weekly active users — thanks, in large part, to appearances from major figures such as Elon Musk and Mark Zuckerberg.
In a blog post, the company said that it will use the latest round of financing "to heavily scale our team to support international growth, invest in localization and accessibility features, launch more programs like the Creator First accelerator to help creators get paid, invest deeply in discovery to help people find the best rooms, and continue to scale our support and community health teams."
"It’s important to us to be building all of this with people who are invested in the community and who represent a diverse set of backgrounds and voices," it added. "Our investor base now spans nearly 200 creators, angels, and funds — including members of the Clubhouse community, institutional investors, professional musicians, athletes and comedians, and many who you might not have heard of outside of Clubhouse."
Notable celebrities who currently use Clubhouse include Oprah, Drake, Kevin Hart, Jared Leto and Ashton Kutcher.
Justin Chan is a news writer at Entrepreneur.com. Previously, he was a trending news editor at Verizon Media, where he covered entrepreneurship, lifestyle, pop culture, and tech. He was also an assistant web editor at Architectural Record, where he wrote on architecture, travel, and design. Chan has additionally written for Forbes, Reader's Digest, Time Out New York, HuffPost, Complex, and Mic. He is a 2013 graduate of Columbia Journalism School, where he studied magazine journalism. Follow him on Twitter at @jchan1109.