Total amount raised
$294 Millions
Latest funding date
12/01/2021
Location
Rec Room has successfully raised funds through multiple rounds, with the latest being a Series F round. The platform is a social gaming app that allows users to build and play games together across various devices.
Keep reading to explore the intricacies of Rec Room's fundraising journey and the investors backing this innovative platform.
What Is Rec Room?
Rec Room, founded on April 1, 2016, in Seattle, Washington, is a social gaming platform that allows users to build and play games together. The company was established by Bilal Orhan, Cameron Brown, Dan Kroymann, John Bevis, Josh Wehrly, and Nick Fajt. With a team of 251-500 employees, Rec Room emphasizes community, creativity, and cross-platform play.
How Much Funding Has Rec Room Raised?
- Seed Round
- Amount Raised: $5M
- Date: February 2017
- Lead Investors: Sequoia Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of the platform and build initial user engagement.
- Series A
- Amount Raised: $9M
- Date: May 2017
- Lead Investors: Sequoia Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate platform development.
- Series B
- Amount Raised: $15M
- Date: June 2019
- Lead Investors: Index Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform features and grow the user base.
- Series C
- Amount Raised: $20M
- Date: December 2020
- Lead Investors: Madrona
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the platform's growth and expand to new devices.
- Series D
- Amount Raised: $100M
- Date: March 2021
- Lead Investors: Index Ventures, Sequoia Capital
- Valuation at Round: $1.25 billion
- Motivation Behind the Round: To support the company's growth and development, achieving "unicorn" status.
- Series F
- Amount Raised: $145M
- Date: December 2021
- Lead Investors: Coatue
- Valuation at Round: $3.5 billion
- Motivation Behind the Round: To build out creator tools, expand to new platforms, and grow the user base.
Total Amount Raised: $294M
Current Valuation: $3.5 billion
Key Investors
- Coatue Management
- Details: Coatue Management is a technology-focused investment firm known for its investments in both public and private companies. The firm led the latest Series F funding round for Rec Room.
- Investment Focus Areas: Technology, media, telecommunications, consumer sectors.
- Notable Investments: ByteDance, DoorDash, Snap.
- Sequoia Capital
- Details: Sequoia Capital is a venture capital firm that has been an existing investor in Rec Room. The firm is renowned for its early investments in some of the world's most successful technology companies.
- Investment Focus Areas: Technology, healthcare, consumer services, financial services.
- Notable Investments: Apple, Google, WhatsApp.
- Index Ventures
- Details: Index Ventures is a global venture capital firm that focuses on technology and life sciences. They have been an existing investor in Rec Room.
- Investment Focus Areas: Technology, life sciences.
- Notable Investments: Dropbox, Slack, Roblox.
- Madrona Venture Group
- Details: Madrona Venture Group is a venture capital firm that specializes in early-stage technology companies, particularly in the Pacific Northwest. They have been an existing investor in Rec Room.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Amazon, Smartsheet, Redfin.
What's Next for Rec Room?
Rec Room's future is brimming with opportunities. The platform plans to expand its creator tools, grow its user base, and venture into new platforms. With 37 million users and a $3.5 billion valuation, the potential for growth is immense. The VR and metaverse space is attracting significant investments, indicating a large and growing market.
Future fundraising opportunities look promising as Rec Room continues to scale. The company may attract further investments from venture capitalists and other investors, potentially leading to more Series funding rounds. However, challenges such as competition from other VR and metaverse companies, maintaining user engagement, and ensuring platform safety could pose hurdles along the way.
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