How is Clubhouse making money?

Clubhouse is an audio-only app (that is currently just on iOS) that allows people to have a room to talk (about almost anything). As of the time of writing it is invite-only and you can apply to be part of their wait list (or if you know someone with an invite they can invite you).

There are so many people using it (there isn’t an specifics available but many people are talking about it on Twitter) that their servers are consistently going down.

It launched in April 2020, and already has at least $12 million in VC money. On January 24th 2021 they announced another round of money (it is estimated that $100 million was raised, the exact money wasn’t disclosed at the time of writing), but that leads to a question that many probably aren’t thinking about. How are the VC’s going to make their money back.

They aren’t any ads on Clubhouse, and they aren’t selling anything that happens in the conversations, so how do they plan to make money (and pay back their VC’s)?

I reached out to Clubhouse by email to see if they would explain how they plan to make money and pay back their VC’s. I didn’t receive a response after giving them 5 business days to respond.

In January 2021 I’m trying an experiment, I’m going to be posting at least 2 blog posts per week. This is not only to see how the engagement is, but how my writing goes over during the time. As always you can contact me directly if you have any thoughts or opinions on this or what I’ve written on. This is post number 60 as part of 100 Days To Offload.


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