Virtual reality software has a unicorn: Rec Room, creator of the free-to-play social and gaming platform by the same name, announced it has raised $100 million in new funding at a valuation of $1.25 billion. The new round of funding, led by Sequoia Capital and Index Ventures with participation from Madrona Venture Group (all existing investors), comes three months after it announced a $20 million Series C round in December, when it was valued at $278 million, according to PitchBook.
What’s behind the boost in investor confidence? Here’s what CEO and co-founder Nick Fajt told The Information’s Alex Heath:
