Tuesday February 07, 2017

Record $2.3 billion VR/AR investment in 2016

Venture capitalists and corporate investors have sunk $2.3 billion into virtual reality and augmented reality in 2016. This is over 3 times the $700 million that was invested into the technologies during 2015! AR hardware firm Magic Leap raised $793.2 million by themselves. Their business has a $4.5 billion valuation. $4 of ever $10 invested went to AR firms. Unity received $181 million for the VR/AR service and solutions sector. This brings their valuation to $1.5 billion. This means that $2 of every $10 went to the VR/AR service and solutions sector. VR video only grabbed $1 of every $10 invested to further those companies along. Other investments into related VR /AR startups accounted for $200 million in VC / corporate investment.

Following the money trail, it is obvious that VR and AR are here for the long haul. As a hardware enthusiasts community; we've all upgraded our PCs for a demanding game release, faster processors, higher resolution monitors, better inputs like controllers / mechanical keyboards, etc. What would make you upgrade your PC to experience VR in it's fullest glory for the first time?

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What next? That difficult second album can be a bear, so it’s going to be interesting to see how VC and corporate investors respond this year in the light of 2016’s mixed year in terms of performance and VR/AR’s new trajectory driven by mobile AR. But no matter what happens in the short term, the long term looks bright for VR/AR investors and the startups they’re fueling.