Square Enix-backed Magic Potion Games completes Series A after Imagine Island tops one million players
| Date | Type | Companies Involved | Size |
|---|---|---|---|
| Aug 20, 2026 | investment | Square Enix | Not disclosed |
- Imagine Island attracted more than one million players during its beta.
- Magic Potion is preparing new gameplay, creator tools, community events and children's entertainment partnerships.
Magic Potion Games has completed a Series A financing round as its flagship platform Imagine Island emerges from beta after attracting more than one million players.
The studio was founded by veterans of Club Penguin, Disney Online, Electronic Arts and Epic Games including CEO Stephen MacDonald, a 25-year gaming veteran.
Its backers include Square Enix, 1AM Gaming, 1Up Ventures and Konvoy Ventures, while Bungie founder Alex Seropian and Club Penguin co-founder Lane Merrifield have supported the company as advisors.
Building for Gen Alpha
Imagine Island is designed as a safe online platform for Gen Alpha, incorporating live moderation, COPPA-compliant privacy protections and age-appropriate social features.
As part of its next phase, 1AM Gaming founder and managing partner Gregory Milken will join Magic Potion's board alongside Konvoy Ventures' Josh Chapman.
The company is also preparing new gameplay, creator tools, community events and a parent-friendly membership model, alongside partnerships with several major children's entertainment franchises.
We interviewed Magic Potion Games founder and CEO Stephen MacDonald about the funding round, Gen Alpha players and child safety.
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