Rec Room is positioning itself as one of the strong contenders for the metaverse as its newest funding of $145M comes with $3.5B valuations after the previous one of $100 million at a $1.25 billion valuation. This is yet another sign of the prospects for user-generated content and the game investment boom.
Users-as-creators is the big theme in the latest gaming boom, which has seen user-generated content platform Roblox go public and Overwolf raise $127.5 million in two rounds this year for PC gaming mods and helper apps. Red Room represents the universe of virtual worlds which are all interconnected among themselves, like in novels such as Snow Crash and Ready Player One.
Coatue Management led the round followed by other investors
Coatue Management is the one who led the round, with participation from existing investors like Sequoia Capital, Index Ventures, and Madrona Venture Group which ultimately made the valuation of Rec Room possible and a huge success for the metaverse.
The rise of Rec Room and its unbelievable growth in user count
In 2016, Rec Room was launched as a free-to-play experience, and now it has had 37 million lifetime users. But it wasn’t so easy for them to get where they are now as Rec Room started with a focus on virtual reality headsets. That market got hype in 2016, but it took off more slowly than hoped. After that Rec Room pivoted to other platforms, including game consoles, PCs, and mobile devices.
Since November 2020, the growth of monthly users in Rec Room has jumped nearly 450% with mobile users increasing more than tenfold during that same time. Rec Room is free to play and is available on mobile devices, game consoles, PC, and VR headsets, including iOS, Android, Xbox, PlayStation, Oculus, and Steam.
What are your thoughts on Rec Room getting a valuation of $3.5B in 2021? Let us know in the comments section below!