The titular ‘social audio’ app was a would-be $1bn unicorn in the pandemic, but its recent decline has exposed it as just another Silicon Valley solution in need of a problem to solve
In March 2020, a new app suddenly arrived on the block. It was called Clubhouse and described as a “social audio” app that enabled its users to have real-time conversations in virtual “rooms” that could accommodate groups large and small. For a time in that disrupted, locked-down spring, Clubhouse was what Michael Lewis used to call the “New New Thing”. “The moment we saw it,” burbled Andrew Chen of the venture capital firm Andreessen Horowitz, “we were deeply excited. We believe Clubhouse will be a meaningful addition to the world, one that increases empathy and provides new ways for people to talk to each other (at a time when we need it more than ever).”
The app could not have come at a better time for social media, he continued. “It reinvents the category in all the right ways, from the content consumption experience to the way people engage each other, while giving power to its creators.” His firm put $12m of its (investors’) money behind Chen’s fantasies and followed up a year later with an investment that put a valuation of $1bn on Clubhouse, which would have made it one of the “unicorns” so prized by the Silicon Valley crowd.
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