[STEAM] Imagine Island raises funding round after hitting a million players in beta

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, the studio behind Imagine Island, said it grew the game to more than one million players in its beta and it has now raised a funding round.

The launch for the Irvine, California-based company is a major milestone for the company after Imagine Island welcomed more than one million players during beta through entirely organic growth. Backed by a newly completed Series A, Magic Potion is entering its next chapter as it builds the next generation of safe online environments for Gen Alpha. The company did not disclose the amount raised in the funding round.

Founded by industry veterans behind iconic gaming experiences including Club Penguin,
Electronic Arts, Disney Online, and Epic Games, and backed by an experienced group of
gaming founders, operators, and investors including Square Enix, 1AM Gaming, 1Up
Ventures, and Konvoy, Magic Potion is reimagining what online games can be for Gen Alpha
by putting creativity, community, and most importantly, child safety at the heart of every
experience.

“We believe play has the power to inspire, connect, and create lasting memories,” said
Hideaki Uehara, general manager of the Investment and Business Development
Department and Head of Square Enix Collective at Square Enix Holdings, in a statement. “What impressed us about Imagine Island is its commitment to building a safe and welcoming
virtual world for children while encouraging creativity and self-expression. Combined with
the experience and passion of the Magic Potion team, we are excited about the future they
are creating.”

As children spend more time socializing, creating and expressing themselves online, many
parents feel they’re choosing between platforms that prioritize engagement and monetization over child wellbeing, or limiting online play altogether. Imagine Island was built to offer a different path: an online world designed from the ground up to encourage creativity, self-expression and positive social experiences in an environment parents can trust.

Designed specifically for children ages six to 13, Imagine Island combines live moderation,
COPPA-compliant privacy protections, and age-appropriate social features to create a
trusted online environment for kids and families.

“As both game developers and parents, we’ve always believed Gen Alpha shouldn’t have to
choose between fun and safety online,” said Stephen MacDonald, CEO of Magic Potion Games, in a statement. “Reaching one million players organically tells us that vision is resonating with families around the world. We’re just getting started, and we’re excited to continue expanding Imagine Island while staying true to the values that brought us here.”

The Series A financing welcomes Gregory Milken, Founder and Managing Partner of 1AM
Gaming, who shares the same vision for children’s online experiences, to Magic Potion’s
Board of Directors alongside Josh Chapman, General Partner at Konvoy.

Magic Potion has been supported by industry veterans, Alex Seropian, founder of Bungie the studio behind Halo, and Lane Merrifield, cofounder of Club Penguin, who have helped guide the company’s growth as members of its advisory team.

“Magic Potion is building something that addresses a real need for Gen Alpha and their
families, and the early response demonstrates there’s significant demand for online worlds
that combine creativity, community and trust,” said Seropian, in a statement. “The team behind Imagine Island understands what makes online worlds meaningful while recognizing the expectations families have today, and I’m simply thrilled to help shape a platform built specifically for them.”

Following the beta, Magic Potion is preparing a significant expansion of Imagine Island. Later
this year, the company will launch several major new entertainment partnerships that will bring some of the world’s largest children’s franchises to the platform, alongside new gameplay experiences, creator tools, community events, and a parent-friendly membership model designed to provide clear value without relying on aggressive monetization.

With more than one million players already experiencing Imagine Island during beta, no paid
marketing, and a nomination for Best Web Game of the Year in the 2026 Pocketgamer Awards, Magic Potion enters its next chapter focused on expanding the platform while remaining committed to creating one of the one of the most trusted online platforms for children and families.



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