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Equity

Equity Monday: Clubhouse, UiPath, and the crypto flash crash

Equity

TechCrunch

Entrepreneurship, Business News, News, Business, Technology

4.2372 Ratings

🗓️ 19 April 2021

⏱️ 8 minutes

🧾️ Download transcript

Summary

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines. This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here. First, our news roundup from last week was probably the most fun I've had in a few months, so make sure to catch up on that if you haven't. That said, here's a rundown of what we got into on the show this morning: The new Clubhouse round has us thinking about what is a good venture-style bet, and what isn't. At least you can't fault the Clubhouse crew for not having conviction. UiPath raised its IPO range, as expected. There's an Apple event this week, which caused us to wonder why more startups aren't competing with the giant. Cryptos have recovered from the flash crash, which had us thinking. Druva raised $147 million as TechCrunch will report later today, and Razorpay raised even more capital at a newly refreshed valuation. Finally, DoNotPay had some news, but it's corporate ethos proved even more interesting. The week is here, everyone! It's Monday! We can do this! Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Equity is brought to you by Extra Crunch, that Prodigious Tech Ranch Paywell you keep running into.

0:05.0

You can break through that Paywell at a steep discount if you use the promo code Equity.

0:09.0

If you do, you'll get access to our best stuff and you'll make Equity look really good internally at the same time.

0:13.5

Enough of that, let numbers behind the headlines.

0:35.4

This morning I am stuck thinking about the concept of what makes a good venture style bed,

0:39.4

you know, or investment, and where VC probably is losing its perch.

0:44.0

More on all of that in a second.

0:46.0

Let's talk about the weekend.

0:47.0

All right, so this weekend, the big news was that

0:52.0

Andresen Horwitz partner Andrew Chin announced that Clubhouse has raised a new round that his firm Tiger DSD and others put capital into.

1:01.0

The Series C comes just months after the audio chat app, if you will, raised a hundred

1:06.0

million at a $1 billion valuation.

1:08.4

Now, we don't actually know how large the ground was, but it's been reported pretty often that it's about a $4 billion valuation

1:15.0

attached to this round.

1:16.1

So it's a lot of money.

1:17.1

It's a lot of money.

1:18.1

Okay, so why do we care?

1:20.1

Well, a couple of things.

1:21.1

One, by pumping more capital into clubhousehouse at a roughly 4X valuation multiple,

1:25.0

Clubhouse is now so very expensive for other companies to buy

1:28.0

that it's nearly off the market thanks to its investors.

1:31.0

Unless of course it stumbles and then it may accept a lower price later on, but a

...

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