Roblox Valued At $4 Billion After Latest Funding Round
Roblox has grown in popularity because it provides users a set of tools through which they can create unique games that other members can engage with. Users can by virtual currency that opens up other tools to further enhance the game developing experience.
The main user base are preteens and teens and the user base has been consistently increasing. In 2018, there was 70 million users and that has increased to 115 million users today.
One of the largest investors in the platform has been the venture capital firm Andreessen Horowitz. Late-stage investments have helped increase the valuation of the company from $2.5 billion in 2018 to $4 billion today.
“What gets us really excited and where we see the most upside is in the long-term vision,” said David George, general partner at Andreessen Horowitz. “We think there is a real chance for Roblox to become the metaverse.”
Roblox is the third highest grossing gaming app sold on both iPhones and Android phones. The model relies on gaining new users through a network effect in which friends tell other friends to buy the app.