Rec Room Valuation, Funding & Investors
Rec Room is valued at $3.5B as of December 2021.
Last Rec Room valuation
$3.5B
Series F · Dec 2021
Last Rec Room funding round
$145M
Series F · Dec 2021
Cumulative funding Rec Room raised
$294M
across 6 funding rounds
Key investors in Rec Room
Sequoia Capital
Index Ventures
First Round Capital
Madrona
Acequia Capital (AceCap)
Maveron
About Rec Room
Rec Room is a San Francisco-headquartered social VR platform supporting multiplayer games and user-generated worlds on Oculus Quest, PlayStation VR, and PC. Launched in 2016, the service hosts daily events for millions of users across basketball courts, paintball arenas, and custom rooms created with its toolkit.
Founded
2016
HQ
Seattle, WAWebsite
Status
Privately held
Customer focus
B2C
Revenue model
Product sales, Advertising
Valuation
$3.5B (Dec 2021)
Rec Room Valuation
Rec Room is currently valued at $3.5B, based on its Series F in December 2021.
The $145M round was led by Coatue, with participation from Smash Capital, Index Ventures, Sequoia Capital, Employee Stock Option Fund and Madrona.
Rec Room's valuation has grown 28x from $126M at its Series B in June 2019 to $3.5B in December 2021, across 3 priced rounds.
Rec Room valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Dec 2021 | Series F | $3.5B |
| Mar 2021 | Series D | $1.3B |
| Jun 2019 | Series B | $126M |
Rec Room Funding History
Rec Room has raised a total of $294M across 6 funding rounds.
Rec Room's first fundraising round was a $5M seed round in February 2017. The most recent completed round was a $145M Series F in December 2021.
Rec Room funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Dec 2021 | Series F | Coatue (lead); Smash Capital; Index Ventures; Sequoia Capital; Employee Stock Option Fund; Madrona | $145M | $3.5B | Rec Room is a Seattle-based social gaming platform that enables users to create and play immersive games without coding. The platform operates as a user-generated content ecosystem, available across mobile, consoles, PC, and VR headsets including Steam, PlayStation, Xbox, and Oculus Quest. In December 2021, Rec Room raised $145 million in Series F funding led by Coatue Management, with participation from existing investors Sequoia Capital, Index Ventures, and Madrona Venture Group, reaching a post-money valuation of $3.5 billion. This round followed a Series D financing of $100 million in March 2021 (at a $1.25 billion valuation), making Rec Room the first VR company to achieve unicorn status. The capital was designated for expanding platform features, enhancing VR and cross-platform capabilities, building out creator tools, and investing in trust and safety systems. By December 2021, Rec Room reported 37 million active users across its platform, with the largest user base on mobile devices and growth on console and VR platforms, positioning it as the largest social VR application at that time. The company was actively expanding its creator monetization program, with payouts to game creators reaching $1 million by March 2021, and users able to earn real money from their in-game creations through a paid cosmetics and content system. |
| Mar 2021 | Series D | Index Ventures (lead); Sequoia Capital (lead); Madrona | $100M | $1.3B | Rec Room, a Seattle-based social gaming platform specializing in user-generated content for VR, PC, consoles, and mobile, raised $100 million in a Series D funding round on March 23, 2021, led by Sequoia Capital and Index Ventures, with participation from Madrona Venture Group. The round valued the company at a post-money $1.25 billion, marking its entry into unicorn status as the first VR company to achieve this milestone. Prior to this, Rec Room had raised approximately $26 million across seed to Series C rounds, with key earlier investors including Coatue and Index Ventures. The funding was intended to scale the platform, enhance user-generated content tools, expand gaming experiences, and grow the user base through initiatives like the Creator Compensation program, which aimed to pay out over $1 million to creators building virtual rooms. At the time, Rec Room had surpassed 15 million lifetime users, tripled its player base in the prior 12 months, hosted over five million rooms, and seen two million users create in-game content. The company reported 566% year-over-year revenue growth, though specific revenue figures were not disclosed, and positioned itself as a competitor to Roblox in the social gaming and creator economy space. Rec Room's growth was fueled by the pandemic-driven surge in social apps relying on user-generated content, enabling virtual hangouts, games like Paintball and Parkour, and no-code creation tools. Following this round, the company raised another $145 million in December 2021 at a $3.5 billion valuation, led by Coatue Management with the same co-investors, to further invest in creator tools, VR enhancements, cross-platform expansion, and monetization for in-game creators. |
| Dec 2020 | Series C | Madrona (lead); Index Ventures; First Round Capital; Sequoia Capital; DAG Ventures | $20M | - | Rec Room is a social gaming platform originally VR-centric but expanded to mobile, PC, console, and other platforms, enabling users to create and play in customizable virtual rooms, mini-games, and social hangouts. The company, founded in 2016 by Against Gravity, focuses on user-generated content (UGC), community building, and cross-platform play, with features like Rec Royale battle royale mode. By late 2020, it had seen significant growth, particularly in mobile users. On December 17, 2020, Rec Room closed a $20 million Series C funding round led by Madrona Venture Group, with participation from existing investors including First Round Capital, Index Ventures, Sequoia Capital, and DAG Ventures. This brought total funding to just shy of $50 million at the time. Just three months later, in March 2021, Rec Room raised $100 million in a Series D round led by Sequoia Capital and Index Ventures, with Madrona participation, achieving a $1.25 billion post-money valuation and unicorn status. This was followed by a $145 million Series E in December 2021 led by Coatue Management, valuing the company at $3.5 billion, with total funding reaching around $294-349 million across rounds. Investors highlighted Rec Room's growth, with monthly users up nearly 450% since November 2020 and over 12 million rooms created. Traction included explosive user growth, over five million rooms on the platform, two million creators, and initiatives like a Creator Compensation program paying over $1 million to top creators. The company planned to use funds for user acquisition, platform expansion, trust and safety, and creator tools. Later developments included workforce cuts in August 2025 amid high burn and strategic focus on top creators and first-party content like Paintball, narrowing from broad UGC ambitions. |
| Jun 2019 | Series B | Index Ventures (lead); Maveron; Betaworks; First Round Capital; Acequia Capital (AceCap); Anorak Ventures; DAG Ventures | $15M | $126M | Rec Room is a social gaming platform that enables users to build and play games without coding, initially launched as VR-only but expanded to consoles, PC, and mobile. The company raised its Series B round of $15 million in April or June 2019, achieving a post-money valuation of $126 million, with Index Ventures as a key investor alongside others like First Round Capital. This followed earlier seed and Series A funding totaling around $14 million. The 2019 Series B supported product development, platform expansion, and community growth as Rec Room built out creator tools and an on-platform economy similar to Roblox. By late 2020, a $20 million Series C was raised, and the platform had grown significantly ahead of later unicorn rounds. |
| May 2017 | Series A | Sequoia Capital (lead); Acequia Capital (AceCap) | $9M | - | Rec Room raised $9 million in a Series A round on May 26, 2017. Investors included Sequoia Capital as lead and Acequia Capital. The round followed a $5 million seed round on September 9, 2016. |
| Feb 2017 | Seed | Sequoia Capital (lead); Maveron; Betaworks; First Round Capital; The Venture Reality Fund/VRF; Acequia Capital (AceCap); Anorak Ventures; Vulcan Capital | $5M | - | - |
Who has invested in Rec Room?
14 investors have backed Rec Room across its funding rounds, including Sequoia Capital, Index Ventures, First Round Capital, Madrona, Acequia Capital (AceCap) and Maveron.
Lead investors include Coatue, Index Ventures, Sequoia Capital and Madrona.
Rec Room Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| San Francisco, CA | 5 | Lead | Feb 2017 | |
 London | 4 | Lead | Jun 2019 | |
| Philadelphia, PA | 3 | Participant | Feb 2017 | |
| Paris | 3 | Participant | Feb 2017 | |
| Seattle, WA | 3 | Lead | Dec 2020 | |
| San Francisco, CA | 2 | Participant | Feb 2017 | |
| New York City, NY | 2 | Participant | Feb 2017 | |
| San Francisco, CA | 2 | Participant | Feb 2017 | |
| San Francisco, CA | 2 | Participant | Jun 2019 | |
| Los Angeles, CA | 1 | Participant | Dec 2021 | |
| San Francisco, CA | 1 | Participant | Feb 2017 | |
| Seattle, WA | 1 | Participant | Feb 2017 | |
This data is available for Pro users. Sign up to see all 14 Rec Room investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialRec Room Competitors
Rec Room competitors include listed companies like Cover and DouYu, and private ones like Patreon, Create Music Group, Spotter and Epidemic Sound.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| San Francisco, CA | Private | $80M | - | $4B | 50.0x | |
| Los Angeles, CA | Private | - | - | $2.2B | - | |
| Los Angeles, CA | Private | - | - | $2B | - | |
 Stockholm | Private | $85M | - | $1.4B | 16.5x | |
 Japan | Publicly listed | $317M | $34M | $677M | 1.9x | |
 China | Publicly listed | $569M | ($5M) | $140M | - |
Rec Room Public Comps
Rec Room is still privately-owned, but its public comps include RUM Group, NetEase Cloud Music, MBC Group, Skyworth Digital, Sun Corp., Orbbec, Arashi Vision, FuboTV, iQIYI and HTC.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $101M | ($78M) | 39.2x | 19.4x | (50.8x) | (70.5x) | |||
| $1.2B | $244M | 0.2x | 0.2x | 1.2x | 1.2x | |||
| $1.4B | $136M | 1.0x | 1.0x | 10.3x | 17.4x | |||
| $1.3B | $37M | 1.4x | - | 47.5x | - | |||
| $64M | - | 21.8x | 22.2x | - | - | |||
| $140M | $23M | 38.8x | 29.3x | 237.6x | 157.8x | |||
| $1.5B | $134M | 3.7x | 2.6x | 39.8x | 52.0x | |||
| $1.6B | ($122M) | 1.9x | 0.5x | (25.2x) | 23.6x | |||
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Common questions about Rec Room
| When was Rec Room founded? | Rec Room was founded in 2016. |
| Where is Rec Room headquartered? | Rec Room is headquartered in Seattle, WA, United States. |
| Is Rec Room publicly listed? | No, Rec Room is a private, VC-backed company. |
| What is Rec Room's valuation? | Rec Room was last valued at $3.5B in its Series F in December 2021. |
| How much funding has Rec Room raised? | Rec Room has raised $294M across 6 funding rounds. |
| What was Rec Room's last funding round? | Rec Room's last funding round was a $145M Series F in December 2021, led by Coatue. |
| Who are Rec Room's investors? | Rec Room's investors include Sequoia Capital, Index Ventures, First Round Capital, Acequia Capital (AceCap), Madrona, Maveron, Betaworks, Anorak Ventures, DAG Ventures, Smash Capital and 4 others. |
| Which companies are comparable to Rec Room? | Companies comparable to Rec Room include Patreon, Create Music Group, Spotter, Epidemic Sound, Cover and DouYu. |
See companies similar to Rec Room
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