Rec Room Inc., a videogame platform that enables users to build and play in customized online spaces, garnered a $1.25 billion valuation in its latest funding round as the company benefits from a surging 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 Rec Room investors.
The company said it has raised $149 million in total since its founding in 2016.
The platform has logged rapid growth during the coronavirus pandemic as lockdowns and the shift to remote learning have left teenagers—Rec Room’s primary users—spending more time in front of computers and videogame consoles.
Revenue, which Rec Room earns when users make in-game purchases, grew more than sixfold year-over-year in 2020. The platform has recorded more than 15 million lifetime users, and more than one million active users participate every month through virtual-reality headsets, the company said.