Augmented Reality and Virtual Reality startups Surpass $1 billion.
CB Insights, a venture capital database and angel investment database, has released the Frontier Tech report which states that augmented reality and virtual reality startups have raised $1 billion since the beginning of 2014.
The report looks at investment activity in AR/VR– covering trends in funding. It also provides an analysis of what can be expected in AR/VR segment along with a list of top venture-backed augmented reality and virtual reality startups.
The major AR/VR investors are Rothenberg Ventures, Google Ventures, Andreessen Horowitz, and Intel Capital.
According to CB Insights report, $623 million invested by investors across twelve different deals during Q4 of 2014. This includes Google’s investment in Magic Leap. CastAR, an Augmented Reality gaming startup, has secured $15 million in a funding round from Playground Global. CastAR is developing a pair of glasses that projects a layer of digital images and data over the tangible objects. It is similar to Microsoft’s HoloLens, ODG’s R-7 and Google Glass.
Analyzing the investment pattern, out of a the total funding, 4% of investments have gone to healthcare development, 22% is invested into gaming and social development segment, 34% into hardware and 40% in commercial startups.
At this year’s SXSWi event, Jameson Detweiler of Fantasmo Studios said that very soon virtual reality and augmented reality will become essential aspects of our lives. The stack of investments indicates that what Detweiler has expressed seems to be quite near now.
Here is the list of augmented reality and virtual reality startups that have received the funding:
Magic Leap, a US startup company that is working on a head-mounted virtual retinal display which superimposes 3D computer-generated imagery over real life one.
Total Funding: $592 million
Movidius, a provider of dedicated computer vision solutions from silicon to algorithms which results into visual sensing for connected devices and augmented reality.
Total Funding: $86.5 million
Matterport, developer of a system for generating 3D digital models of physical spaces.
Total Funding: $58.3 million
Blippar, a leader in mobile augmented reality (AR) and image recognition platform enabling advertisers to reach consumers via outdoor ads, billboards, magazine etc.
Total Funding: $47.2 million
Leap Motion, an American company that manufactures and markets a computer hardware sensor device that supports hand and finger motions as input, analogous to a mouse, but requires no hand contact or touching
Total Funding: $44.1 million
Jaunt, a complete Cinematic VR solution. Jaunt’s technology provides an end-to-end solution for creating cinematic VR experiences
Total Funding: $35.4 million
According to a TechCrunch forecast that AR/VR market will reach $150 billion revenue by 2020, with AR taking the lion’s share around $120 billion and VR at $30 billion. If the next-generation technology offers mobility, vision, usability, flexibility, wear ability and affordability, it will surely meet the predictions mentioned here.