Rec Room Inc., a video game platform that allows users to build and play in custom online spaces, was valued at $ 1.25 billion in the latest round of funding as the company benefits from rising user numbers during the coronavirus pandemic.
The $ 100 million funding was led by Sequoia Capital and Index Ventures, the company said. Madrona Venture Group also contributed to the investment. All three companies were previous investors in Rec Room.
The company said it has raised a total of $ 149 million since it was founded in 2016.
The platform has grown rapidly during the coronavirus pandemic, as lockdowns and the shift to distance learning mean teens – Rec Room’s primary users – spent more time behind computers and video game consoles.
The revenue Rec Room earns when users make in-game purchases more than sixfold year-on-year by 2020. The platform has registered more than 15 million lifetime users and more than a million active users participate through virtual reality headsets every month, the company said.