Rec Room Inc., a video game platform that allows users to build and play in personalized online spaces, has earned a valuation of $ 1.25 billion in its last round of financing, as the company benefits from an increasing number of users during the coronavirus pandemic.
The $ 100 million financing was led by Sequoia Capital and Index Ventures, the company said. The Madrona Venture Group also contributed to the investment. All three companies were former investors in the Recreation Room.
The company said it has raised $ 149 million in total since its founding in 2016.
The platform experienced rapid growth during the coronavirus pandemic, as blockages and the shift to remote learning left teenagers – the main users of the Recreation Room – spending more time in front of computers and video game consoles.
The revenue, which Rec Room earns when users make in-game purchases, grew more than six times year on year in 2020. The platform registered more than 15 million lifetime users, and more than one million active users participate every month through reality headsets, the company said.