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Roblox recently reached 115 million monthly active users and more than 1.5 billion hours of monthly engagement.
“If early-stage venture is about asking ‘What if it works?’, later-stage venture is about asking and assessing, ‘Is it working?’,” a16z general partners David George and Marc Andreessen wrote in a blog post on the firm’s website. “With largely organic user sign-ups, highly recurring purchase behavior, a high margin structure for the platform, and a super strong value proposition for users (who derive hours of entertainment at a lower cost than they can find elsewhere), Roblox is cash flow positive. Roblox is working.”
Along with the new funding, Roblox has a secondary offering of up to $350 million to provide liquidity for early employees and stakeholders, according to a statement from the company. The company is now valued at $4 billion, according to The Wall Street Journal.
Roblox last raised money in July 2018, when it pulled $150 million for its Series F, according to Crunchbase. Its other investors include Index Ventures, Greylock Partners and Tiger Global Management.
Illustration: Li-Anne Dias.