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    • Like others I am interested in whether it can scale. If I understand it correctly, and the main thrust is groups of people broadcasting their conversations, I would have thought scaling was possible provided the size of the conversant groups was kept to a minimum.

      That is, you could have 1 million listeners, but the group broadcasting would have to remain small in order to be manageable.

      I can also see how an app like this could easily lead to lawsuits....

    • Since the app is an invite-only, I can only speculate on how it could work. It sounds like live podcasting with the audience being able to interact with the celebrities. That seems like the biggest draw to the app.

      In theory, who wouldn't want to listen in and even ask a question of celebrities? In practice, you'll need to have enough celebrities willing to volunteer their time or have enough money to pay them. Then there are potential concerns about real-time trolling and abuse. Just look at Zoom's live video fiascos. Now imagine those Zoom calls publicly listed and available to join.

      One can manage audio discussion in a virtual room of ten or twenty people. Once it gets to 100 people, how would one decide who can speak next?

    • 'Worth' is an interesting term to use, how do you define Value in this sense?

      The app has zero real value at this point in time, but speculators believe it has the potential of making them a lot of money if they get in on the ground floor.

    • 'Worth' is an interesting term to use, how do you define Value in this sense?

      Unless I’m mistaken, if I invest $1 million for 1% of a company then the company is now valued at $100 million. I could be the only investor to accept that valuation for my million dollar investment: the company is now valued at $100 million.

      In fact, all of the other investors could have invested at a $500,000 valuation level yesteday, i.e. a $50,000 investment for 10% of the company.

      But because one or more people invested at a $100 million valuation “round,” that’s what it’s valued at.

      From my perspective, FWIW, I would be interested to know how much was raised at that valuation.

      And @Charles’s article provides the answer for us:

      Clubhouse is the buzzy new social app of 2020, freshly valued at $100 million after a reported $12 million in funding from Andreessen Horowitz. 

      So Andreesen Horowitz got 12% of the company at a $100 million valuation.

      Meaning that they valued it at $100 million.

      You and I might estimate the value of the company at a dollar, but the current valuation stays at $100 million.

      Tagging @Vilen in case I botched my explanation here.

    • While your equation adds up financially I go back to the definition of Value, but beyond a monetary sense.

      The companies worth is purely based on having sold speculators the belief that they can make a lot of money off it. They've sold the sizzle without having made a sausage, let alone BBQ'd it.

      Maybe it's my left leaning viewpoint or the fact that I'm slowly growing into a grumpy old man ;) but I see as much 'value' in this proposition and what people have paid for it as a Kardashian. It's glitzy and people want to pay a lot of money for it, but it's completely useless in the real world.

    • While your equation adds up financially I go back to the definition of Value, but beyond a monetary sense.

      Sorry, Eddie. I thought you were asking about how they came up with the $100 million valuation number. Not whether the business was of value.

      Maybe it's my left leaning viewpoint or the fact that I'm slowly growing into a grumpy old man ;)

      No worries, I’m of a similar bent: I just have a background in Finance so that I can understand “deal memo-speak.”

      I think that their concept is similar to Reddits AMAs or what you might see in a Cake “virtual panel” or Cake interview with audience Q&A. For example, here’s a Cake interview with audience Q&A of a TV star:

      With Clubhouse, I don’t see it as a sustainable business model: you’ll pay a fortune to join a private chat room where once a month(?) your favorite star will chat about what they had for dinner and then maybe your question out of over a thousand others will be answered. If not, you’ll continue paying until your question is answered?

      And what about the rest of the 24/7 week? Will you pay for only a handful of A list celebrities willing to do this? Or will they do a bait and switch where you get not as famous celebrities for most of the month?

      I’m not their target audience, so maybe it’s a billion dollar idea. But based on the above, and @Vilen’s comments previously, I don’t see this scaling to the point where it’s worth $100 million.

      Btw, when’s the next Zoom meeting for the League of Grumpy Old Men In-Training? 🙂

    • I thought both of these tweets were interesting—Mr. Andreesen is the chap who’s firm just spent $12 million for a stake in Clubhouse.