Social gaming and UGC platform Rec Room has raised $145 million from a recent funding round which valued the company at $3.5 billion.

The funding round was led by Coatue Management and included participation from existing investors Sequoia Capital, Index Ventures, and Madrona Venture Group.

Since November 2020, Rec Room’s monthly active users has increased by 450 per cent, with mobile users increasing over ten times.

Rec Room currently has over 12 million rooms in which users can interact, build, create and, play games. The firm has almost 200 employees to maintain the platform, up nearly 60 from last year.

Growing and growing

"It’s been amazing to watch Rec Room grow from a tiny collection of mini-games into a global platform with millions of experiences built by the community," said Rec Room co-founder and CEO Nick Fajt.

"The platform has become a place where people can come together to form meaningful connections, build communities, and share their creativity. There’s still so much more we want to do, and as we head into 2022, we’re excited to build more experiences, expand to new platforms, invest in best in class trust and safety systems, and continue to expand our creator tools."

Coatue Management partner Matt Mazzeo added: "We love the world Rec Room has created for friends to build and play together. From phones to VR, millions of players are hanging out in Rec Room, and we're excited to partner with the team as they make the digital world more fun and immersive."

Rec Room is available free-to-play on mobile devices, as well as consoles, PC, and VR. The game first launched on Android in August 2021.