3 Tips to Get Virtual Reality Funding
While virtual reality isn’t new, it’s definitely buzzing a lot right now as the technology has greatly improved in recent time and lots of funding is being pushed into virtual reality.
$5.3 billion dollars have been invested in virtual reality and augmented reality startup since the beginning of 2010. Out of that, $1.1 billion dollars was funded in just the first couple of months in 2016. $800 million of that money went to Magic Leap which is a company backed by Google.
There was a Virtual Reality Summit in New York earlier this week. At the summit, Nizar Tarhuni talked about what investors are looking for when they decide if they’re going to invest in virtual reality and augmented reality companies or not. Nizar is a senior analyst at PitchBook, which is a market forecasting firm.
If you’re considering possibly getting into the virtual reality industry, below are three things that Tarhuni suggests that you consider if you decide to seek funding.
1) Tarhuni thinks that the largest need in virtual reality ins’t for new headsets. He said, “It’s interesting. Look at VR – what’s going to drive it? We’ve got the headsets, we’ve got the technology, but the content is what’s going to push it forward.” A lot of the entrepreneurs that go into the VR industry don’t have tech backgrounds but are rather people from film, media, gaming and other storytelling types of people. He thinks that to them, it’s clear that content is what’s needed for virtual reality moving forward.
2) Develop a product that will be needed forever. He said, “A lot of the VCs that we talk to want to make sure they’re investing in something that’s agnostic to which part of VR wins. They need VR as a whole to succeed.” For example, a company in Seattle, called Pixvana recently landed $6 million in funding. They stitch videos together that can be utilized in VR platforms. This is the type of service that will be needed for a long time if not forever (as long as there is virtual reality).
3) Be ready to move, change, grow, evolve. Investors want to be assured that you have a backup plan if needed. Tarhani gave an example of a startup company that’s focused on developing a psychedelic VR experience that goes with music. But if people get bored of insane colors and cartoons dancing around, then they would need to spin the development a different way. He said, “While you always ant to be an entrepreneur who’s focused on nailing what your mission is and what your passion is, making sure you can move in different ways helps investors in today’s environment.”