Rec Room Inc., a video game platform that allows users to build and play in custom online spaces, earned a valuation of $ 1.25 billion in its latest round of funding as the company benefits from a growing number of users during the coronavirus pandemic.
The $ 100 million funding was led by Sequoia Capital and Index Ventures, the company said. The Madrona Venture group also contributed to the investment. All three companies were previous investors in Rec Room.
The company said it has raised $ 149 million in total since its founding in 2016.
The platform has seen rapid growth during the coronavirus pandemic as blockages and the shift to remote learning have allowed teens (the main users of Rec Room) to spend more time in front of computers and video game consoles.
Revenue, which Rec Room earns when users shop for the game, grew more than sixfold year-over-year in 2020. The platform has registered more than 15 million lifelong users and more than a million active users. they participate every month using reality headphones, the company said.