How To Invest in Clubhouse, and Whether You Should
What started as a small startup is now a potential social media giant in the making. The clubhouse is a voice-based app that is attracting active audiences and is promising to change the way people engage online.
As a potential investor, the question you should be asking is: Will Clubhouse establish itself as a big tech juggernaut, or will it fizzle out and vanish? The integrity of your investment portfolio depends on answering this question about any budding company, let alone a new tech endeavor like Clubhouse.
What is an Investment in Clubhouse?
Social media websites offer different opportunities to invest in a platform. For Alphabet, the parent corporation of Google and YouTube, you can invest by purchasing stock, investing in one of the company’s spinoffs, or even creating a business on the platform.
How To Invest In Clubhouse?
In the case of Clubhouse, you can invest in the new app through the private capital market. This is because Clubhouse stock is not currently being traded on convenient retail services like Webull or Robinhood. The company hasn’t gone public yet and so its stock is not available to the average investor.
Accessing the private capital markets comes with several prerequisites that most prospective investors won’t be able to meet. This includes having a sizable net worth and an extensive investing background. However, there’s no need to despair as the Clubhouse IPO will be on its way at some point.
Why Should You Invest In Clubhouse?
While no crystal ball can give you a concrete answer, the steady growth of the platform is offering some initial indications as to what the app’s potential may be. As experts agree:
[Clubhouse stock] could be dismissed as a crazy “fad” like MySpace, or it could be a staple in the tech world, like Facebook Inc.
In other words, people that miss out on investing in Clubhouse may have a similar reaction to those that missed out on investing in Google and Facebook 15 years ago.
Risks Involved In Investing In Clubhouse
While Clubhouse may take social media by storm, there are a couple of points you should be aware of. As a potential investor, you should realize that Clubhouse is not planning on following the advertising revenue model. Instead, the app is building towards a subscription-based implementation.
Furthermore, Clubhouse is already making waves in the social media sphere. You can bet your bottom dollar that the other players in the space are already developing voice-based services to compete with Clubhouse. How successful Clubhouse ultimately becomes has a lot to do with what big tech juggernauts do.
Will they attempt to acquire Clubhouse? Will they invest in creating a direct competitor? The response of the established platforms will have a lot to do with the path Clubhouse has as an alternative to the current social media offerings.
Invest In the Future of Social Media
It’s unclear when the Clubhouse IPO will be happening. Potential investors should keep an eye out for the company’s announcements as well as the steps that other market players take in response.
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