Clubhouse has confirmed that it has raised a new Series B funding round at a $1 billion valuation led by Andrew Chen at a16z.
The invitation-only audio-chat social networking app that’s still in private beta and lets you create rooms where you can talk for hours on end, has been exciting users since it became very popular in the last few months.
Eight months ago, the app, raised $12 million in a Series A round which valued the company at $100 million. Today, investors are trying to buy shares from the company’s existing shareholders at an implied value of $1 billion.
Launched in 2020, the app has grown from a small handful of beta testers into a diverse and growing network of over two million people ranging from—musicians, scientists, creators, athletes, comedians, parents, entrepreneurs, stock traders, non-profit leaders, authors, artists, real estate agents, sports fans and more. They come to Clubhouse to talk, learn, laugh, be entertained, meet, and connect.
According to the startups’ blog post “It’s always been important to us to have investors who care deeply about diversity, and who will work hard to help us make Clubhouse a welcoming and inclusive community. We now have over 180 investors in Clubhouse—large and small, spanning many different races, genders, and areas of expertise, and including many members of our early community”.
Why the funding matters
- This new funding will be used to release the android version of the app since it is only available to IOS users while also investing in technology and infrastructure to keep the servers up.
- The app will also introduce creator monetization to help creators on the platform who host conversations for others to get paid, in form of subscriptions, tipping, or ticket sales. Adding ways for users to pay other users provides an opportunity for Clubhouse to retain its users. There will also be a Creator Grant Program’ being set up by Clubhouse, which will be used to “support emerging Clubhouse creators”
- The startup also plans to invest in advanced tools to detect and prevent abuse, and also increase the features and training resources available to moderators.
- The platform will also see changes in its discovery feature to help people discover new rooms and clubs tailored to their interests.