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The Rise and Uncertain Future of Clubhouse: Challenges Controversies and Prospects

Clubhouse, the invite-only audio chat app, has taken the social media world by storm. Despite only being launched in March 2020, it has gained a substantial following, with its high-profile users, live shows, and private rooms attracting the attention of millions of people worldwide.

In this article, well explore the background and experiences of Clubhouse’s founders, Paul Davison and Rohan Seth, and how their venture came to be. Additionally, we will delve into the apps rise and growth, from talk show to Clubhouse, and how it has changed the way people communicate in the pandemic.

to Clubhouse and its Founders

Clubhouse is a social media app that revolves around audio chatrooms, where users can join and participate in conversations with other users. The app has become increasingly popular, particularly during the Covid-19 pandemic, where social distancing restrictions made in-person communication difficult.

Background of Clubhouse Founders

The Clubhouse app was launched by Paul Davison and Rohan Seth. Paul Davison is the CEO of Clubhouse, while Rohan Seth is the Chief Technology Officer.

Before co-founding Clubhouse, Davison was behind Highlight, a social discovery app, and Roll, a private photo-sharing app. He also worked for several tech companies such as Memry Labs, a mobile-contextual assistant, and Opendoor, a real estate startup.

Rohan Seth, on the other hand, is a Stanford graduate, with a background in Computer Science. He previously worked for tech giants like Google and Metaweb Technologies, a database startup.

He co-founded a cryptocurrency startup, CoinList, and worked on short video apps like Shorts and Pinterest.

Previous Ventures and Experiences of Paul Davison and Rohan Seth

Before co-founding Clubhouse, Davison worked with consulting powerhouse Bain, where he earned an Industrial Engineering degree. He also co-founded Highlight App, a social discovery app that lets you see people around you.

He then founded Roll, a private photo-sharing app that enables you to organize and share photos with friends. Davison also served as the CEO and co-founder of Memry Labs, which developed a mobile-contextual assistant, and worked on the real estate startup Opendoor, an online real estate company.

Seth initially worked with Google as a software engineer on Google Maps. He later joined Metaweb Technologies, a database startup, which was later acquired by Google.

Afterward, he co-founded a cryptocurrency startup, CoinList, which helps blockchain companies access funds through token sales. Seth also worked on short video apps like Shorts and Pinterest.

The Rise and Growth of Clubhouse

Evolution from Talkshow to Clubhouse

Initially, Clubhouse was designed to be a talk show app, but its concept has evolved into a standalone audio chat room platform. The app is structured around the concept of rooms where a group of people can participate in audio conversations.

It was initially launched as an iOS app, where users could listen to live programs and send invites to join conversations via Twitter.

Clubhouse’s Success During the Covid-19 Pandemic

Clubhouse’s popularity increased significantly during the Covid pandemic, when people around the world were stuck at home under quarantine.

Clubhouse provided a virtual space for people to connect with others and express their opinions. The platform has attracted high-profile Venture Capitals (VCs) and tech leaders, such as Marc Andreessen, resulting in $100 million valuation after Series A funding.

Clubhouses influencer network has also contributed significantly to its growth, with many celebrities, politicians, and influencers flocking to the platform. Currently, the platform is open to everyone, with an Android launch expected to arrive soon, after the successful beta phase.


In conclusion, Clubhouses meteoric rise to fame is a reflection of its unique concept, filling a void in online communication. The platform has reimagined social media by creating a space where people of all backgrounds can connect and share ideas collaboratively.

By staying consistent with their core values of connectivity based on real-time voice conversations, Clubhouse has undoubtedly secured itself a place as a revolutionary social media app.

Challenges and Controversies Faced by Clubhouse

As Clubhouse grew in popularity, it encountered several challenges around content moderation. These issues mainly revolved around harmful or hateful content that sometimes flowed unchecked through the platform.

Also, there were some controversial incidents where incidents of harassment were reported.

Difficulties in Content Moderation

With Clubhouse being a platform that relies solely on audio content, moderation becomes a unique challenge. Moderating audio content in real-time is not easy, as there are a large number of conversations happening simultaneously.

Initially, the platform relied on a reporting system to deal with problematic content. However, this approach left room for offensive content to continue circulating unchecked until it was flagged.

Clubhouse has since modified its reporting system to give moderators more visibility to user behavior. Clubhouse also introduced a new policy aimed at prohibiting speakers from using hate speech, harassment, and other harmful language in chat rooms.

Breaching the policy could attract a warning, a mute, an account suspension, or outright ban.

Controversial Incidents on Clubhouse

Journalist Taylor Lorenz was among the first prominent individuals to report some of the problematic issues they faced on the Clubhouse platform. The journalist revealed that she was subject to numerous incidents of harassment and abuse by members in a chatroom where she was a guest speaker.

Taylor Lorenz also reported several other incidents of harassment and hate speech on the platform, including anti-Semitic statements made in a specific chat room. These controversial incidents revealed Clubhouse’s lack of moderation and accountability structures, which allowed users to engage in abusive or hateful behavior with few consequences.

The controversy sparked conversations about the need for better moderation and accountability measures on social media platforms.

Decline and Challenges for Clubhouse

Despite its initial success, Clubhouse has struggled to maintain its user base and chart rankings over time. This is because the platform lacks the cultural relevance and technological advances required to preserve current interest and attract new users.

Decrease in Interest and Usage

Search interest data indicates that interest in Clubhouse has declined over time. The number of downloads from the App Store shows a similar trend as shown by data from App Annie.

This decline is evident in data from both the US and other countries. Additionally, Clubhouse’s daily active user numbers show the platform has lost a significant portion of its user base since the beginning of 2021.

The reasons for the decline in usage vary, including; the liberalization of lockdown restrictions, the growing popularity of other audio-only or social media apps, and the perception that Clubhouse was a passing fad. Funding, Layoffs, and Search for a Business Model

Clubhouse had attracted significant startup funding from venture capitalists, with leading firms such as Andreessen Horowitz leading the way.

However, with the decline in downloads and user interest, the company has been unable to secure the funding required to develop new products and business strategies. The company has now shifted its focus towards developing a stable and viable business model for future growth.

As part of this effort, the platform recently laid off several employees, with the CEO citing changes in the economy as one of the reasons for this action. The search for a business model also includes exploring monetization options like tipping, subscription, and advertising in an attempt to generate revenue stream.


Clubhouse has experienced several challenges, including issues around content moderation and declining user interest. The platform may recover by introducing more proactive measures in content moderation, as well as finding new strategies positioning itself as a significant social media through platform differentiation.

However, with new competitors entering the market, only time will tell whether Clubhouse can ultimately overcome its challenges and cement itself in the social media space.

Future Prospects for Clubhouse

Clubhouse has gained significant attention in the social media landscape; however, its future prospects have become uncertain. Whether or not Clubhouse can adapt to the evolving social media ecosystem and growing competition will determine its fate.

Potential for Recovery and Adaptation

Clubhouse has shown resilience in the face of significant challenges. The platform has continued to make enhancements and improvements, including sales of virtual merchandise and ticketed events.

The company is slowly pushing towards finding a sustainable business model that works for its user base.

Clubhouse has also made it easier for creators to monetize their content.

The platform has experimented with features such as offering virtual items for purchase during live conversations to monetize the streaming experience. This consistency and adaptability have shown potential for recovery.

Challenges and Competition in the Social Media Domain

The social media domain is highly competitive, with new apps and features constantly emerging. It’s a race to acquire new users and retain them.

Acquiring new social media users is accomplished through creating a superior app or developing a competitive moat, the stickiness a product has that gives it a sustainable edge over others. Competing apps and layouts are inevitable in the social media domain.

Copycat features are also common and adapted regularly, making true differentiation a challenging feat. Instagram, for example, copied Snapchat’s stories feature and integrated some of Snapchat’s other features.

Users could then choose between Instagram and Snapchat, each app providing a unique set of features.

Conclusion on the Fate of Clubhouse

Uncertain Future and Possibilities

The future of Clubhouse is uncertain, with various possibilities for its success or potential downfall. The platform has faced significant challenges such as maintaining user growth, revenue growth, and keeping up with content moderation demands.

However, it remains a highly dynamic industry with a long history of similar ups and downs. Other possibilities also exist beyond the social media market.

Adaptive changes could see it move into an area within social media such as remote conferencing, webinars or remote education, which is proving popular in the current pandemic climate.

Comparison to Other Promising Social Startups

Startups in the social media arena have a high rate of mortality. One example of a social media startup with a great rise and fall is Vine, the popular platform that let users create and share six-second videos.

Though it experienced a meteoric rise, Vine fell as quickly as it rose, and now the app has been discontinued from the app stores. Other startups, such as Snapchat and TikTok, have seen tremendous growth and long-lasting user interest.

These social media platforms have innovated and adapted to meet the diverse needs of their users. Such an adaptation over time could be the key to long-term survival for any social media platform.

Given this, it is difficult to forecast with certainty which path Clubhouse will go down. However, its current troubles and competition point toward the possibility of a tough road ahead.

Clubhouse must continue to innovate and adapt to stay ahead of its competitors and provide users with the experience they want to see.


Overall, the future of Clubhouse in the social media space is uncertain. The company has faced many challenges, but it has shown resilience and so it is forthcoming to say that there is a chance it will survive this long.

In all, whichever path Clubhouse chooses to follow, one thing is certain; competition is fierce, and differentiation is essential for survival. In conclusion, Clubhouse has experienced significant success and growth since its launch, attracting high-profile users and revolutionizing online communication.

However, the platform has also faced challenges, including content moderation issues and declining user interest. Its ability to adapt, find a winning business model, and compete in the ever-evolving social media domain will determine its fate.

As the future of Clubhouse remains uncertain, it serves as a reminder of the competitive and volatile nature of the social media world. The story of Clubhouse highlights the need for constant innovation, differentiation, and the ability to meet the changing demands of users in order to succeed in the dynamic landscape of social startups.

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