New Audio Only App Clubhouse Catching On

Clubhouse is a new smartphone app that my millennial daughter turned me on to recently. If you are like me, you may not have heard of it. But it is a company to look out for. Even Elon Musk has joined.

Right now it is a start-up social media company established in January of 2020, when it raised an undisclosed amount of money from a few angel investors.

The company has completed two early stage venture capital (VC) rounds. The Series A round raised $10 million in May 2020. And the Series B round raised $100 million at the end of January 2021. This valued Clubhouse at $1 billion.

For a start-up to grow from zero to $1 billion in 12 months is just incredible. Very few early stage companies achieve this value level this quickly. Clubhouse is not publicly traded, but look for an IPO in the future.

We all use Zoom more than we would like these days. But with Zoom calls, we all have to worry about our appearance and what the environment around us is like. Is our background presentable? Will background noise cause problems?

Clubhouse is taking a step back from videoconferencing services like Zoom and reverting to an old-fashioned conference call format. Clubhouse users create “rooms” in which designated people schedule talks and presentations. Because it’s all audio there is no need to change out of your PJs.

What’s more, videoconferencing takes up far more bandwidth than audio-only calls. For this reason, the quality of Zoom calls tends to be lower. Sometimes the video freezes or the audio cuts out.

Their content offering includes book clubs, fireside chats, debates, and even comedy shows all hosted on the platform.

Anyone is free to “join” any room to listen to the speakers, but all listeners are restricted from speaking until the end of the scheduled talk. At that point, listeners can raise their hands to ask questions or engage with the speakers. It is a permissioned platform; so only those who are recognized are permitted to speak on the call.

Currently, Clubhouse is an invite-only platform. That means you have to find a current user to invite you to join. Even with that constraint, Clubhouse is experiencing explosive growth. The platform now has about one million daily active users (DAUs).

If you compare this to Facebook’s almost 1.85 billion DAUs, it’s clear it will likely grow quickly.

You might want to put Clubhouse on your watchlist. This company has the potential to become the next darling in the world of social media.

How to get started from SocialMediaExaminer

What Mashable is saying

More on Clubhouse from Today

CNBC Coverage

Floyd Saunders is the author of Figuring Out Wall Street. His next book, Five Simple Paths to Wealth will be published in March. You can learn more about him at his author web site.


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