Rec Room Valued at $3.5B after new $145M Funding Round
Once a niche social virtual reality (VR) platform before expanding to more traditional devices like smartphones and consoles, Rec Room has today announced a new funding round and a massive valuation. Closing a new $145 million USD investment, Rec Room is now valued at $3.5 billion.
It was only back in March that Rec Room managed to raise $100 million at a valuation of $1.25 billion. That’s quite the jump in nine months seeing Coatue Management as well as existing investors Sequoia Capital, Index Ventures and Madrona Venture Group all participating in the new round of funding.
“We love the world Rec Room has created for friends to build and play together,” said Matt Mazzeo of Coatue Management in a statement. “From phones to VR, millions of players are hanging out in Rec Room, and we’re excited to partner with the team as they make the digital world more fun and immersive.”
It’s not too surprising considering the year Rec Room has had. Excluding all the funding news Rec Room has expanded to Android devices, adding to the roster of supported platforms that include iOS, PlayStation 5, PlayStation 4, Xbox Series X, Xbox One, Steam, Oculus Quest, and PC VR headsets. Following that, there was a full-body costume update, the addition of multiplayer racer Rec Rally and the Reclympics which took place over a couple of weeks.
“It’s been amazing to watch Rec Room grow from a tiny collection of mini-games into a global platform with millions of experiences built by the community. The platform has become a place where people can come together to form meaningful connections, build communities, and share their creativity,” said Rec Room co-founder and CEO Nick Fajt. “There’s still so much more we want to do, and as we head into 2022, we’re excited to build more experiences, expand to new platforms, invest in best in class trust and safety systems, and continue to expand our creator tools.”
Launched in 2016, Rec Room expanded beyond VR a couple of years later seeing 37 million people use the platform. Free to download, Rec Room saw a 450% increase in user numbers since November 2020, mainly thanks to mobile support. For continued updates, keep reading VRFocus.
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