More than any other startup, Clubhouse epitomizes the venture-capital-backed euphoria that swept the tech industry since lockdowns shut millions of people inside and pushed them online for connection, entertainment, and information. It has raised more than $100 million from his firm and other top VCs, garnering a $4 billion valuation.
But with vaccinations rising and more people returning to normal life, Clubhouse has been hit particularly hard. Daily downloads of the app have plunged more than 90% since a peak in June, while daily average users are down almost 80% since February, Apptopia data indicated.
Insider interviews with creators, advertisers, VCs, and others in the tech industry show a platform struggling to build an audience and keep it. Moneymaking opportunities are also slim, which makes the app a tough sell for creators and users as there are many other options online and off.
The buzz in the tech-investor community may be fading, too. "To be honest, no one really talks about it anymore," said one VC, who asked to remain anonymous to avoid upsetting industry counterparts.