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.

learn more about Justin Chan

By Justin Chan

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

Entrepreneur Staff

News Writer

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 YorkHuffPost, Complex, and Mic. He is a 2013 graduate of Columbia Journalism School, where he studied magazine journalism. Follow him on Twitter at @jchan1109.

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

Green Entrepreneur

A Massive Hole In the Sun May Cause Dazzling Light Show Here On Earth

NASA says the coronal hole could blast the Earth with solar winds as early as Friday. What does this mean?

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Business News

The 'Airbnbust' Proves the Wild West Days of Online Vacation Rentals Are Over

Airbnb recently reported that 2022 was its first profitable year ever. But the deluge of new listings foreshadowed an inevitable correction.

Leadership

'Bare Minimum Mondays' Could Mean Productivity 'Hell' for the Rest of the Week, Expert Warns — Here's How to Prevent It

Executive coach and Merging Path CEO Brooks E. Scott reveals what employers should do to stop burnout before it starts.