Rec Room Raises US$ 145 Million at a US$ 3.5 Billion Valuation

Mar, 2022 - By WMR

The virtual reality gaming platform has seen development on portable devices, now values at US$ 3.5 billion.

After releasing the Metaverse, the virtual reality gaming platforms are developing their algorithm to support the expanding universe. To participate in this universe, Seattle-based gaming startup, Rec Room has raised funding to US$ 145 million. The virtual reality platform had valued at US$ 3.5 billion. This pricing is much more than the original value of Meta’s VR platform, Oculus. The Oculus has been valuated at US$ 3 billion in 2014.

The funding of Rec Room has been led by Coatue Management, along with, their original investors Madrona Venture, Index Ventures, and Sequoia Capital. This funding will be used in the development of the virtual reality platform and expanding the company. The designers of this virtual reality platform previously worked on HoloLens' efforts of Microsoft. The CEO of Rec Room, Nick Fajt stated that the platform has gained many more users during the pandemic. The isolated people enjoyed playing laser tag, paintball, and various other team sports virtually. The platform has gained approximately 45% users in November 2020. This growth has been done because of their iOS and Android applications.

The company had created more than 12 million playrooms for the users to utilize. Users can use these playrooms to play, chat, and interact with other users. After the introduction of Metaverse, the Rec Room platform seems to be supported by using the Meta users. Users can experience less gaming traffic after the expansion.

After Roblox gaming went public, the platform gained an average of 31.1 million on an opening day. After seeing this development, the Rec Room had decided to raise the fundings for the expansion of the platform. Meta’s Rift VR headsets are much compatible with the Rec Room platform. Since the company is showing so many opportunities for business expansion. Investors are investing heavily in VR startups. For fundings like this, various VR platforms are developing new technologies in their sector.