Social VR app ‘Rec Room’ raises $ 100 million in funding, now at $ 1.25 billion – road to VR
Recording room, the social virtual reality platform, announced that it had secured a $ 100 million funding round, bringing the company’s valuation to $ 1.25 billion. This makes it one of the most valuable VR companies outside of the platform owners Facebook, Valve, and HTC.
Talk to the Wall Street newspaper, Rec Room reveals that its biggest round to date has been led by Sequoia Capital and Index Ventures, and includes Madrona Venture Group, all of whom are existing investors.
That brings the Seattle-based company’s lifetime funding to $ 149 million after its last round in December 2020, when the company secured its $ 20 million Series C.
While the download is free, undoubtedly one of the platform’s biggest monetization strategies is selling tokens, which can be used to purchase in-game merchandise and access user-generated content. . There is also a ‘Plus’ subscription which includes a steady supply of tokens to spend and discounts on certain in-game items.
However, in recent months, Recording room also allowed Plus members to create items and rooms for the game and sell them for a sort of “premium token” which can then be exchanged for real money. In short, the company is laying the foundation for a functioning economy, in which its users invest time to create more value in the platform while making real money.
With over a million monthly active VR users and many more joining on traditional consoles, mobile devices and PCs, Recording room is well placed to do so. Now, with substantial venture capital behind them, the company has more leeway to grow in its emerging economy, likely with goals similar to the type of wealth creation seen in Second life. For now, the studio hopes to pay creators $ 1 million in real money in 2021 through its token exchange program.
Oh, and in case you were wondering, Rec Room is recruiting.