Andreessen Horowitz backs Roblox as valuation reaches $4bn

27 Feb 2020340 Views

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Roblox founder and CEO David Baszucki. Image: Roblox

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Roblox has closed its $150m Series G funding round, attracting new investors such as Andreessen Horowitz, Tencent and Temasek.

On Wednesday (26 February), San Mateo gaming business Roblox announced that it has raised $150m in Series G funding, bringing the company’s valuation up to $4bn.

The company, which is best known for its online multiplayer game that enables users to design their own games and play games that have been created by other users, said that the funding round was led by Andreessen Horowitz’s Late Stage fund.

Roblox added that the funding comes as the company is experiencing significant growth, having recently reached 115m active monthly users and more than 1.5bn hours of monthly engagement. With the latest round of funding, Roblox plans to “fuel the company’s long-term mission to define a new category of human co-experience”.

Temasek and Tencent Holdings Limited have joined Andreessen Horowitz as new investors in the round, while existing investors Altos Ventures, Meritech Capital and Tiger Global Management returned.

Doubling down on its commitment

Roblox CEO and co-founder David Baszucki said: “We’ve stayed true to our vision of creating a safe and civil place where people come together to create, learn and have fun, and it’s amazing to see what we’ve built together with our global creator community.

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“Looking ahead, we’re doubling down on our commitment to building the most advanced tools and technology to take our creators and players into the metaverse of the future.”

Roblox CFO Michael Guthrie added: “The expertise of the Andreessen Horowitz team will strengthen our roster of world-class investors. This investment further bolsters our balance sheet while we grow our incredible team of engineers and support our creators around the world with the technology and infrastructure to build more immersive, massive and collaborative experiences.”

Guthrie said that the company has confidence in its long-term vision and its ability to grow the value of the business over time. “Roblox is also in the enviable position of being cash-flow positive. As such, we feel strongly about enabling our early investors, former employees, and current employees to share in our financial success along the way,” he said.

Andreessen Horowitz general partner David George added: “We are big believers in Roblox’s long-term vision, and are confident in backing the team as they enter the next inflection point.

“Roblox is one of those rare platform companies with massive traction and an organic, high-growth business model that will advance the company, and push the industry forward for many years to come.”

Kelly Earley is a journalist with Siliconrepublic.com

editorial@siliconrepublic.com