Social Gaming Platform Rec Room Announces New Funding at $1.25 Billion Valuation
This news follows the social platform raising $100M from Existing Investors Sequoia and Index
SEATTLE, March 24, 2021 /PRNewswire/ -- Today Rec Room, the gaming platform for user-generated content, announced the close of $100 million in new funding, bringing the company's valuation to $1.25 billion. The new funding was led by existing investors Sequoia Capital and Index Ventures with participation from existing investor Madrona Venture Group. This news continues a year of unprecedented milestones for the young company, which launched in 2016, as it celebrates 15M lifetime users and 566% YOY revenue growth.
Rec Room, which can be accessed via VR headsets, game consoles, PCs, and mobile devices, has over 5M rooms to explore with friends. 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. To date, over 2M 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 such as the Creator Compensation program, which will pay out more than $1 million to creators during 2021.
"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," says Rec Room Co-Founder and CEO Nick Fajt. "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."
Beyond just gaming, Rec Room has become the go-to place for digital hangouts, creative classes, adventures with your friends, office build-outs, weddings, and more. 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 almost any function imaginable.
"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," said Stephanie Zhan, Sequoia partner and Rec Room board member. "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."
Free to download and play, Rec Room is available on iOS, Xbox, PlayStation, Oculus, and Steam. To learn more about the platform and its upcoming initiatives, please visit recroom.com for more information.
About Rec Room
Rec Room is the best place to build and play games together. Party up with friends from all around the world to chat, hang out, explore millions of player-created rooms, or build something new and amazing to share with us all.
Rec Room is free, and cross plays on everything from phones to VR headsets. It's the social app you play like a video game!
SOURCE Rec Room
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