Rec Room raises $145m at $3.5b valuation

VR and user-generated content are proving popular as Rec Room eyes 2022 expansion

Quick read

➨ Rec Room, the social gaming company with a big focus on VR and user-generated content, has raised $145 million in new funding, taking its valuation to $3.5 billion

➨ The new funding follows a $100 million capital raise earlier this year

➨ Coatue Management led the latest round, with participation from existing investors Sequoia Capital, Index Ventures and Madrona Venture Group

The story

Rec Room, the social gaming company with a big focus on virtual reality (VR) and user-generated content, has raised $145 million in new funding, taking its valuation to $3.5 billion.

The new funding follows a $100 million capital raise earlier this year. Coatue Management led the latest round, with participation from existing investors Sequoia Capital, Index Ventures and Madrona Venture Group.

Launched in 2016, Rec Room claims to have enabled more than 37 million people around the world to connect and create through the free-to-play platform that encourages users to meet, socialise and play in customisable, interactive rooms, which now number at more than 12 million.

The new funding follows the release of the game on Android in August, meaning it is now available on mobile devices, game consoles, PC and VR, including SteamVR, Playstation VR and Oculus/Meta.

Rec Room co-founder and chief executive officer Nick Fajt says: “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.”

“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.”

Matt Mazzeo of Coatue Management adds: “We love the world Rec Room has created for friends to build and play together. 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.”

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Images: Rec Room