Clubhouse seeks funding at $4-billion valuation - TechCentral

Clubhouse seeks funding at $4-billion valuation

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Clubhouse, the buzzy, audio-based social network, is in talks to raise funding from investors in a round valuing the business at about US$4-billion, according to people familiar with the matter.

A deal at that price would quadruple its value from January and would reflect the astronomical expectations investors have for the app. Clubhouse is barely a year old but has drawn appearances from some of the biggest names in business and Hollywood and inspired copycats from several of the world’s biggest social networks.

It’s unclear how much Clubhouse is seeking to raise or which investors are participating. Terms of the round could still change, said the people, who asked not to be identified because the discussions are private. A spokeswoman for Clubhouse didn’t immediately respond to requests for comment.

Paul Davison and Rohan Seth started Alpha Exploration, the start-up behind Clubhouse. The app lets users host their own online radio shows. Listeners can tune in to hear interviews or panel discussions and ask to participate in live chats.

Andreessen Horowitz has been a major booster of the app. It initially valued the parent company at $100-million before the investment in January at 10 times that valuation.

Competitors quickly went to work on their own versions of Clubhouse. Twitter introduced one called Spaces. Facebook is exploring one, too. Microsoft’s LinkedIn and Slack Technologies have also said they’re working on similar features for their networks.  — Reported by Katie Roof, (c) 2021 Bloomberg LP

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