Unravel Two - No Continued Saved Game

I installed the game via steam. After playing for 2 hours, when I relaunch the game it shows there is no saved game and I have to restart from the beginning. I tried re-installing the game on different drives, run as administer and verifying game files, but it still wont save my progress at all. I really want to play this game with my friend. Any help would be much appreciated.