Rec Room announced a $145 million round of financing with a total valuation of $3.5 billion

Social VR platform Rec Room announced that it has secured a new $145 million round of funding, bringing the company's total valuation to $3.5 billion.

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

First released on Steam in 2016 for VR and tablet games, Rec Room has changed a lot over the years, from a social VR platform focused on first-party content and mini-games to something more Roblox-like, including the company's high focus on user-generated content, which the company says is highly focused on, and now has more than 12 million user-generated rooms.

Over the past few years, the platform has expanded a lot to reach more users. Rec Room is a free app that not only serves VR users of Meta Quest, PSVR, and SteamVR, but also cross-gaming with traditional gaming platforms and mobile devices such as Android, iOS, PlayStation 4/5, Xbox Series X, Xbox One, PC via Steam, and more.