Rec Room Inc., a video game platform that allows users to build and play in custom online spaces, garnered $ 1.25 billion in its latest round of funding as the company receives an increased number of users 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 the Rec.
The company said it has raised a total of $ 149 million since its founding in 2016.
The platform grew rapidly during the coronavirus pandemic, as blockages and the transition to distance learning allowed teenagers – the main users of the Rec Room – to spend more time in front of computers and video game consoles.
Revenue, which Rec Room earns when users make in-game purchases, has increased more than sixfold from year to year in 2020. The platform has more than 15 million lifetime users and more than one million Active users participate each month through virtual reality headsets, the company said.