Roblox has achieved a position among the most highly valued private companies globally, following a substantial Series H funding round that establishes the social gaming platform’s worth at an impressive $29.5 billion. However, this private status is not expected to last.

This $520 million investment, spearheaded by Altimeter Capital and Dragoneer Investment Group, represents a considerable injection of capital for Roblox. Previously, the company had secured slightly over $335 million in funding from various investors, as reported by Crunchbase. Additional participation in this latest round came from The Investment Group of Santa Barbara, Warner Music Group, and existing investors.

Earlier, in February 2020, Roblox completed a $150 million Series G funding round, guided by Andreessen Horowitz, which resulted in a company valuation of $4 billion.

The gaming company had originally intended to launch an initial public offering (IPO) in 2020. However, following the substantial first-day stock increases experienced by companies like DoorDash and Airbnb, the company’s management team reevaluated its plans, as detailed in an Axios report. These significant initial gains meant those companies left potential revenue unrealized, a situation Roblox likely aims to prevent. The company announced today its intention to access public markets through a direct listing.

Roblox’s valuation increase by a factor of seven demonstrates the current high demand for technology stocks in both public and private markets. This valuation also reflects investor expectations that the company will continue to profit from trends accelerated by the pandemic, which led to increased online activity and a surge in popularity for social gaming platforms. The company reported 17.6 million users in a 2019 prospectus; currently, Roblox states it has 31 million daily active users on its platform.