Magic Potion Games Secures Series A to Scale Imagine Island
AI-generated image · Bay Street Wire
Founded by former Club Penguin developers, the Kelowna-based studio aims to monetize a safe social gaming environment for Gen Alpha.
Magic Potion Games, a studio based in Kelowna, BC, has raised an undisclosed amount of funding in a Series A round, according to BetaKit. The investment comes as the studio's child-friendly title, Imagine Island, moves out of its beta-testing phase.
Founded by veteran Canadian developers Stephen MacDonald, Karin Johnson, and Sascha Williams—all former employees of Club Penguin—the studio is positioning Imagine Island as a spiritual successor to the defunct title. The game is designed for children aged six to 13, focusing on social interaction, home decoration, and quests. BetaKits reports that the game reached over one million organic players during its testing period.
While the studio emphasizes safety through COPPA-compliant privacy protections and live moderation to differentiate itself from competitors like Roblox, the Series A funding supports a broader commercial expansion. Magic Potion stated it is preparing for a rollout later this year that includes new gameplay experiences, several "major entertainment partnerships," and the implementation of a membership monetization model.
The studio's leadership is supported by an advisory team that includes Lane Merrifield, a co-founder of Club Penguin and investor on Dragons’ Den, as well as Alex Seropian, the founder of Bungie.