AR/VR Funding Reaches $1.7 Billion in Past 12 Months
Digi Capital’s most recent report on Augmented/Virtual Reality revealed that $1.7 billion has been invested in the past 12 months and that in just the first quarter of 2016 alone, $1.2 billion has been invested. A big chunk of that went to the company, Magic Leap.
Magic Leap received $800 million in funding.
Also to help put this into perspective, $1.2 billion dollars is 25 times more than the amount invested in AR/VR in quarter 2 of 2014, just 2 years ago.
Even if Magic Leap didn’t receive that huge round of funding, the quarter 1 investment in 2016 would still have been 45% higher than the quarter before it. The sectors that led the way for AR/VR investments in 2015 were solutions/services, video, AR/VR hardware, games, consumer apps, peripherals, tech, distribution and advertising/marketing.
There are a few unicorns in the market already even though the VR/AR is still relatively brand new. Oculus is worth $2 billion, Magic Leap is worth $4.5 billion, Mindmaze is worth $1 billion and Blippar is worth $1.5 billion.
Venture capital firms throughout the United States and China have begun heavily focusing on VR/AR. Some of the VC firms are firms that are dedicated solely to VR/AR and some are just random VC firms that have an interest in this area.
As competition increases on the funding side, that means that the investments are going to be keep rising as well as the company’s valuations. Investments in virtual reality and augmented reality are heating up and they’re heating up fast.