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Rec Room Raises $145M at a $3.5B valuation

Rec Room has raised $145 million, funding it will use to continue building out its tools and audience of gamers to create their own experiences across mobile devices, game consoles, PC, and VR headsets. The funding is being led by Coatue Management, with participation from existing investors Sequoia Capital, Index Ventures, and Madrona Venture Group, and it is coming in at a $3.5 billion valuation.This hike on its valuation earlier this year, in March, when it raised $100 million led by Sequoia at a $1.25 billion valuation. It has seen some awe-inspiring growth. It noted 2 million people playing and creating content in March; now, it said it has 37 million.

The funding is coming on the back of very significant growth and scale for Rec Room, amid a more comprehensive climate where suddenly more attention is being focused on VR and immersive experiences, specifically, companies building content that engages users in those mediums. Rec Room is a “social gaming” company in a couple of regards: The key to its growth has been not just the ability to create games and play those created by others and to join in rooms to play together, but the ability to provide a well-used, virtual social space for users to hang out beyond gameplay.

Rec Room has been around for just five years, and it has avoided the fast-rise/precipitous fall that has characterized so many other social gaming hits. It has now racked up 37 million users who build and play games in “rooms” where they virtually hang out with other users. There are some 12 million rooms on the platform already.

It is not clear how many active users there are out of that 37 million figure, Rec Room said that the monthly user count has grown by almost 450% in the last year and that mobile users are driving some of that growth, up tenfold in that period.

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