Clubhouse, the bustling audio-based social network, is in talks to raise funds from investors in a round that values the business at around $ 4 billion, according to people familiar with the matter.
A deal at that price would quadruple in value since January and reflect the astronomical expectations investors have for the app. Clubhouse is barely a year old, but it has attracted appearances from some of the biggest names in business and Hollywood and inspired copycats from several of the world’s largest social networks.
It’s unclear how much Clubhouse is seeking to raise or which investors are participating. The terms of the round could still change, said the people, who asked not to be identified because the discussions are private. A Clubhouse spokeswoman did not immediately respond to requests for comment.
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Paul Davison and Rohan Seth started Alpha Exploration Co., the startup behind Clubhouse. The application allows users to submit their own radio shows online. Listeners can tune in to listen to interviews or panel discussions and request to participate in live chats.
Andreessen Horowitz has been a huge driver of the app. It initially valued the parent company at $ 100 million before the investment in January at 10 times that valuation. (Bloomberg LP, the parent company of Bloomberg News, has invested in Andreessen Horowitz.)
Competitors quickly got to work on their own versions of the Clubhouse. Twitter Inc. introduced one called Spaces. Facebook Inc. is exploring one too. From Microsoft Corp. LinkedIn and Slack Technologies Inc. has also said that they are working on similar features for their networks.
– With the assistance of Ellen Huet