
A16Z funds voice-only social media app with 5000 users at $100M valuation - alangibson
https://www.forbes.com/sites/alexkonrad/2020/05/15/andreessen-horowitz-wins-vc-sweepstakes-to-back-clubhouse-voice-app/
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lowdose
It's a classical pull signal from a VC. While the valuation is on a 100
million they paid $10 million in primary capital and at least $2 million in
secondary shares. But the amount of attention this generates is enormous.
Everybody and their grandmother with a startup is going to apply to A16Z.

The opportunities generated from that is worth 10 million at least. It is just
a better mouse trap in an economy bracing for the impact of a recession.

VC do not deploy marketing resources to normal channels they signal value
through deal channels that do not make sense to other people. It is effective
because even on the channel of a competing VC we are talking about A16Z.

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redis_mlc
Wow, that's cynical. Love it!

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sschueller
Didn't we have call in party phone numbers like this in the 90s?

How is this worth 100m?

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btowngar
I don't really see how your first sentence is related to the second!

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Kkoala
They might not be related but the second one is a relevant question I think.

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alangibson
This looks like a good example of investing in the founders, not in the
business. The business is very WTF, but the article makes the founder sound
like a known quantity.

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rasz
$20K per user is only 20x worse than Quibi with 1.3 million active users and
$1.75 billion spend making it ~$1.3K per user, or even legendary Broadcast.com
acquisition by Yahoo that made Mark Cuban a billionaire. Yahoo CEO Tim Koogle
made a !brilliant! decision to pay $10K per user! $5.7 billion dollars written
off in less than two years.

