Rec Room Inc., a video game platform that allows users to build and play in personalized 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 financing was led by Sequoia Capital and Index Ventures, the company said. Madrona Venture Group also contributed to the investment. All three firms 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 lockdowns and the shift to remote learning have left teens, the primary users of Rec Room, spending more time in front of computers and video game consoles.
Revenue, which Rec Room earns when users make in-game purchases, grew more than six times year-over-year in 2020. The platform has logged more than 15 million lifetime users, and more than one million active users participate. every month through virtual services. reality headphones, the company said.