VR Gaming Platform Rec Room Raises $145M

Rec Room, a free-to-play VR gaming platform, has raised $145 million, valuing the company at $3.5 billion. 

Led by Coatue Management, the funding round included existing investors Sequoia Capital, Index Ventures, and Madrona Venture Group. 

Rec Room will use the fresh capital to build out its creator tools, expand to new platforms, and grow an audience that has reached 37 million users, up from 2 million users in March. 

Rec Room adds to a growing list of tech companies embracing VR and the metaverse. 

• In June, Meta’s virtual reality division, Oculus, acquired BigBox VR, a VC-backed startup that creates online VR games, for an undisclosed amount. 
• ForeVR Games raised $7 million during a seed round in August to bring classic real-world games to VR platforms. 
• In October, Florida-based augmented reality startup Magic Leap raised $500 million from unspecified investors, valuing the company at $2 billion. 
• Last month, Microsoft announced an integration with its office-focused Microsoft Teams software and metaverse platform Mesh. 

Promising Growth 

Rec Room has yet to disclose revenue figures, but the company said in March it has paid out $1 million to game creators on its platform. That same month, the company raised $100 million, giving it “unicorn” status as a privately held startup valued at more than $1 billion.