Roblox Has Raised $520 Million In New Funding
Investors have provided the building blocks for something even bigger.
Multiplayer sandbox/game dev sensation Roblox in its most recent Series H funding rounds, led by investors Altimeter Capital and Dragoneer Investment Group. Other well-known companies like Warner Music Group and the Investment Group of Santa Barbara also participated in this round. This news comes in the wake of Roblox Corp. filing the paperwork to go public with an initial public offering (IPO) back in November. The company has since decided to opt for a direct listing instead of the IPO.
For those unfamiliar with the , companies often go through multiple series of funding rounds as they grow and progress. When a company needs more funding to get to the next level of its business, it undergoes a valuation that takes several factors into account including the company's management, market size, risk, and proven track record. Each round usually has a different purpose, with Series A being focused on optimizing a company's user base and product, and each ensuing Series focusing on a different aspect of the company's growth and development.
In its Series H funding valuation, Roblox was valued at $29.5 billion, with its stock at a purchase price of $45 per share. According to a , this additional funding will be used to "advance Roblox's growth initiatives and mission to build a human co-experience platform that enables shared experiences among billions of users." Roblox, like Fortnite, has become more than just an online game. Between player-created content and in-game concerts featuring artists like Lil Nas X, it has become its own huge online platform.
The Roblox team was excited to add these new investors to their roster. "We're thrilled to welcome Altimeter, Dragoneer and the other new investors," said Roblox co-founder and CEO David Baszucki. "We look forward to working with all of them as we continue our mission to build a human co-experience platform that enables shared experience, from play to work, and learning among billions of users."
Investors seem very positive on Roblox's future outlook. "While once viewed as a gaming platform, Roblox has emerged as a definitive global community connecting millions of people through communication, entertainment and commerce," said Altimeter Capital CEO Brad Gerstner. "And as the world moves toward a hybrid future – where online and offline community and learning co-exist, we are proud to back a values-driven business that takes seriously its obligation to build an inclusive, creative, and positive community."