- Rec Room announced it closed $100 million in a new round of funding at a valuation of $1.25 billion. These are the details.
Rec Room, a gaming platform for user-generated content, announced recently that it closed a $100 million round of funding. This funding round brought the company valuation to $1.25 billion. The new funding round was led by existing investors Sequoia Capital and Index Ventures with participation from existing investor Madrona Venture Group.
This news brings a year of unprecedented milestones for the company (launched in 2016) as it celebrates 15 million lifetime users and 566% year-over-year revenue growth.
Rec Room – which can be accessed via VR headsets, game consoles, PCs, and mobile devices – has over 5 million rooms to explore with friends. And these rooms are built by players inside of Rec Room leveraging their easy-to-use creative tools.
In Rec Room, you can party up with friends worldwide, and build everything from escape rooms to adventure games, battle royale islands to birthday parties. And to date, over 2 million players have created content inside of Rec Room, making it one of the largest collaboratively-built virtual worlds ever made. This number continues to grow with incentives like the Creator Compensation program – which will pay out more than $1 million to creators during 2021.
Beyond just gaming, Rec Room became the go-to place for digital hangouts, creative classes, adventures with your friends, office build-outs, weddings, and more. And this is yet another reason for the company’s rapid growth — though many of its users are in their teens, Rec Room is highly customizable and can be used by anyone and for nearly any function imaginable.
Rec Room – which is free to download and play – is available on iOS, Xbox, PlayStation, Oculus, and Steam.
KEY QUOTES:
“Rec Room was founded with the goal of bringing people together and giving them tools to express their creativity. Every day we see the Rec Room community creating friendships, making memories, and launching new digital entrepreneurs. We think providing those opportunities are more important now than ever. Rec Room is only at the beginning of its journey, and we’re excited to use this funding to help more people connect, create and play.”
— Rec Room Co-Founder and CEO Nick Fajt
“As a new generation comes online, Rec Room is the destination to explore new worlds with friends, create your own games and imaginative worlds, and even earn money sharing your creations. Since first partnering with Nick and team at the seed, we’re thrilled to continue working with them to build a safe and welcoming community for all, and to make Rec Room the digital third place for kids at heart.”
— Stephanie Zhan, Sequoia partner and Rec Room board member
