The Over-Under on New Voice-Chat App Clubhouse

The new voice-chat app Clubhouse recently made waves by raising its first institutional round of financing, which reportedly valued the company at more than $100 million. Many considered this number shocking given that the app is still in private beta and is used mostly by a handful of Silicon Valley insiders. It also lacks any obvious immediate path to monetization or scale.

People are right to be generally skeptical of financing rounds priced like that, especially in the uncertain context of a global pandemic. However, I think it is a mistake to dismiss the product or the financing out of hand. Whether or not Clubhouse is able to capitalize on its idea, the app has exposed the potential for a major new consumer behavior and network based on verbal “conversations” that will eventually become meaningful in the world.