Roblox, the popular gaming platform for children, announced in a memo to employees yesterday that it would delay its planned IPO, previously scheduled for December, into next year, the Wall Street Journal reported.
First Round Capital was an early investor and owns 7% of Roblox shares, according to the S-1 filing released three weeks ago.
“Based on everything we have learned to date, we feel there is an opportunity to improve our specific process for employees, shareholders and future investors both big and small”, Roblox CEO David Baszucki said in the memo, which was viewed by the Journal.
The staggering post-IPO market receptions for both Airbnb and DoorDash this week led Roblox and its bankers to rethink pricing strategy for its IPO. In its first day of trading on Thursday, Airbnb shares more than doubled from their offering price and ended with a valuation over $100 billion.
Roblox’ platform, which lets user invent games, had already seen its user base soar before the pandemic, which further increased its popularity.
Roblox was valued at $4 billion in its latest round earlier this year.
First Round Capital invested multiple times in Roblox, dating back to its Series A in 2005 according CrunchBase.