What’s Got an Initial Investment of 1 Billion Dollars Already in 2016?
With smartphone sales and exposure climbing to the status of reaching an all-time high and slower tablet sales continuing to drop even more, the technological industry and the members are hoarding themselves around any basic funding they can get their hands on as they are on the lookout for the tech software that will be the “next big catch” and fast innovation practices paired with an awesome customer adoption as much as the iPhone and other handsets did, ranging almost over a full decade ago. If interest from major tech companies and increasing investment into new technologies are anything to go off of, the industry believes that the next big catch may very well be right underneath their noses, and it is…its augmented and virtual reality devices. A single device can start at a cost of $800. Can you imagine that cost plus the need to possibly buy a new computer that can keep up with that particular technology?
Yearly funding for augmented and virtual reality businesses and startups have already hit an all-time high with an immense record breaking $1.1 billion being channeled in through funding into AR and VR businesses in 2016 so far this year, according to a new report issued by Digi-Capital.
Tim Merel, Founder and CEO of Eyetouch Reality and Digi-Capital, said, “Augmented Reality and Virtual Reality investment reached $1.1 billion in the first 2 months of this year. This is the first time that AR/VR investment has topped a billion dollars in any year let alone 2 months, and shows incredible growth compared to the $700 million invested during all of 2015.”
Not that it really calls for it, but many people think that it should be stated that almost $800 million of the $1.1 billion investment in AR and VR this year went to only one company called Magic Leap, but $300 million had already gone over to much smaller companies in the AR/VR services, but also including hardware costs, advertising and marketing, and even distribution costs. “Even without Magic Leap, investment is up 20% in Q1 2016 compared to the $250 million invested in Q4 2015,” Merel said. “Plus there’s another 4 weeks left for investors to boost AR/VR this quarter.”
An ever increasing investment and funding in the AR and VR technological market comes at an ironic time when basically every major tech member is vying to get into the market place and make its mark. The Facebook acquired Oculus Rift and HTC’s Vive should be released soon. Microsoft is sending out its flagship HoloLens development kit to developers at the end of March. PlayStation VR will have a release date sometime later this year. Even the ever cautious Apple is rumored to have a group of their designers and researchers exploring VR technology.
But don’t let the interest from major tech players fool you, because this should be no surprise, especially with the thought of virtual reality revenue to be projected to hit $120 billion per year by 2020.
Imagine, there’s even virtual reality software coming that will let you feel and gain the sensation of touch while adventuring in the virtual world. The opportunities in virtual reality are endless.