The pandemic drove Clubhouse to a $4 billion valuation that never looked sustainable
Publishing timestamp: 2023-04-27 19:15:47
Summary
Social audio platform Clubhouse is laying off half its staff to "reset" the company after a meteoric rise during the pandemic. The company's valuation was viewed as frothy even in 2021, and its growth had flattened before a revenue model was ever put in place. The layoffs come as economies are reopening and the Federal Reserve is signaling the end of rock-bottom interest rates. Clubhouse's founders insist they have enough capital to keep going and are working on "Clubhouse 2.0" to be a better way for people to hear their friends' voices and have more meaningful conversations. However, the odds are increasingly long for the company to succeed, as viral apps often die off when the buzz goes away.
Sentiment: NEGATIVE
Keywords: venture capital, breaking news: technology, start-up, social media, business, peloton interactive inc, zoom video communications inc, marc andreessen, technology, business news,