Social video game Rec Room has just successfully raised $100 million, reaching a total valuation of $1.25 billion. The latest funding round was led by Sequoia Capital and Index Ventures, and the raised funds will be allocated toward social VR growth.
Rec Room launched in 2016 as a free-to-play online experience, allowing players from around the world to explore user-generated rooms and interact with the objects inside them. The game now has more than 15 million players, who can enjoy it—with or without a headset—on Microsoft Windows, PlayStation 4/5, Oculus Quest 1/2, iOS 12.0 and up, Xbox One, and Xbox Series S/X.
“We’ve had strong growth over the last 12 months. We think that Rec Room can become an enduring large business that fuses games and social,” said Rec Room CEO Nick Fajt. “We think this can be one of those things that really impact culture. We think it can be one of the biggest games in the world. And so we really want to invest in that future.”
At the time of writing this story, Rec Room players are adding approximately 20,000 new virtual rooms every day, creating everything from intricate escape rooms to tropical islands where deadly Battle Royale events can take place.
While the game started with a strong focus on virtual reality, only 25 percent of its player base now experience it through virtual reality headsets. “VR is still a very important part of what we do. We’re probably still a top two or top three VR app,” Fajt said.
Long-term Rec Room would like to become the go-to virtual place for all kinds of social interactions, including meetings, classes, and possibly even weddings. Right now, about 40 players can be in the same room together, but increasing the limit shouldn’t be a problem for the game’s developers.