Value of Clubhouse Audio App Is About $4 Billion: Really?
This Start-Up Has Begun to Attract Controversies Despite Being Developed Only One Year Ago
The live-audio application Clubhouse is currently a trending communication app. Mark Zuckerberg, Demi Lovato, Kanye West, Oprah Winfrey, and Elon Musk are among some of the celebrities who are currently using the Clubhouse app. On this premium live-audio chatting app, every topic can easily be accessible from Bitcoin to relationships and even R&B music.
Although, the idea that Clubhouse is now worth more than $4 billion, just after one year of development, is startling. Currently, the San Francisco-based start-up Clubhouse is looking for fresh financial funding at this initial level.
Even though this start-up began in the previous year, and the firm was unable to perform positively due to the coronavirus pandemic, but at the start of this year in the month of January, the venture capital fund Andreessen Horowitz was able to buy a stake which was valued the firm at the quarter of the entire sum.
This jump could also be justified as another report was published which suggested that the social media platform Twitter was in the discussion of buying the Clubhouse application for a much higher price tag, although the confirmation of this rumor was declined by the firm in later days.
Worth of Clubhouse app
According to the statistical analysis conducted in the month of March, it has been reported that 13.4 million users have been able to join the Clubhouse app, having added around one-fifth of the total users over the time duration of the past four weeks only.
The live-audio communication application has been able to grow quickly over a short period of time, despite being only available through the invite-only link, and has a limitation to only work on the iOS by Apple. Clubhouse was able to found and target a gap in the world’s market.
The Clubhouse is currently being known as an intersection of several of the hot trends, including live, audio, and social media.
This application has been able to recreate some of the things that the general population around the world is unable to do normally due to the restrictions which have been put into place amid the coronavirus pandemic, such as being able to physically attend a talk or being able to have a conversation as a group.
At the present time, Clubhouse is unable to generate any revenue, but this is not an important aspect for the start-up.
If we recount the history of major social media platforms of today, the founder of Facebook insisted that its subsidiary Instagram should take its due time before introducing advertisements after Facebook was able to buy the social media app in the year 2012 for the groundbreaking worth of that time, $1 billion. The reason behind buying an application with such a high price was that Mark Zuckerberg was trying to establish to first stay in power.
But the real value of Instagram was achieved after both Twitter and Facebook tried to buy the firm. But at this time, it is unlikely that this might be the case.
A few years before, there could have been a possibility that Facebook could’ve tried to buy Clubhouse, but this app is not in the market as a social networking platform due to the competition scrutiny Clubhouse is currently facing, and the only option left for Facebook is to compete with it.
Recently, Facebook has been able to launch a new web-based application named Hotline, which allows users to chat with an audience via both text and audio.
The social media site Twitter has already recently launched an audio-streaming feature that is available in the existing Twitter application, named Spaces. Currently, this feature is only available for selected creators, but the firm has planned to allow every user to create a ‘space’ by the end of this month.
Other firms, including LinkedIn, Slack, and Discord, are also currently working to allow similar features for their users.