Rec Room Clinches $20 Million in Series C Funding
Rec Room has clinched a new round of fundraising in its bid to bring the erstwhile VR-centric world to all the leading gaming platforms available.
The $20 million Series C funding was led Madrona Venture Group. Also participating in this funding round include existing investors such as Index, First Round Capital, DAG and Sequoia. To date, the social gaming platform has raised close to $50 million.
Rec Room has been around for quite some time and is a social hub and gaming platform for VR users. Recently, Rec Room has been scaling up its ambitions to satisfy the demands of its young user base. The year 2020 has been a particularly big one for Rec Room in pivoting its appeal and scaling up its reach.
According to Rec Room CEO Nick Fajt, the company has been able to triple its audience over the past year which has been driven by its concerted drive and expansion into new platforms. A good portion of Rec Room’s audience is still from the hardcore VR audience but the social gaming platform has also been able to substantially grow its console user base this year. Fajt projects that by the end of next year, the mobile platform will have grown into Rec Room’s most common entreport, supplanting VR. The last frontier that remains to be conquered by Rec Room is mobile Android.
One of Rec Room’s main aims as the company heads into 2021 is to scale up its creation tools that enable players to create their own experiences inside the game. Out of the platform’s 10 million registered users, more than 1 million already engage with its creator tools. In 2021 Rec Room is also planning to scale up its creator payment estimating. By the end of next year, the social gaming platform expects to have paid out $1 million to their creator network.
The Rec Room boss wants the platform’s creation tools to be more accessible to its general player base more than other platforms such as Roblox and it aims to keep these tools simple for the time being while simultaneously pushing its everyday users to invest more of their time in the creation platform.
While the Virtual Reality market has been slow to pick up steam, Fatj has said that his VR company will stay the course and keep its VR roots for the foreseeable future. Rec Room has recently updated its popular battle royale mode known as Rec Royale for iOS as well as the new Quest 2 headset.