Rec Room Inc., a video game platform that allows users to build and play on custom websites, was valued at $ 1.25 billion in its latest round of funding, 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. Madrona Venture Group also contributed to the investment. All three companies were former Rec Room investors.
The company said it has raised $ 149 million since its inception in 2016.
The platform has seen rapid growth during the coronavirus pandemic, as lock-in and the transition to distance learning have led teens – Rec Rome’s primary users – to spend more time in front of computers and video game consoles.
The revenue that Rec Room earns when users make in-game purchases grew more than six times over the year in 2020. The platform has registered more than 1