Another half a billion dollars was invested into virtual and augmented reality startups in the third quarter of this year, with a record $2.3 billion dollars invested in the last 12 months. Q3 2016 saw the 9th straight quarter of investment trending upwards, as the money flowing into AR/VR is now being driven by major Sand Hill Road VCs and corporate investors. With check sizes averaging $9.3 million (or $16.4 million excluding seed deals) in the quarter, AR/VR investment is rapidly going mainstream. Details are in Digi-Capital’s new Augmented/Virtual Reality Report and Deals Database Q3 2016.
Video of Digi-Capital’s Tim Merel presenting an overview of the VR/AR/MR industry today, and where it’s headed tomorrow (Warning: may contain many facts).
Digi-Capital’s Reality Check for October has just been announced. Reality Check is a quarterly forum for VR/AR CEOs, corporate divisional heads and VC General Partners by invitation only. It’s free if you’re lucky enough to be invited, and Digi-Capital limits the numbers to a few hundred to keep the “signal to noise ratio high.”
“Stop calling Pokémon Go AR” say the purists. But who cares what you call something that is so successful? Just be glad it happened, and let’s figure out what it means for the AR/VR industry.
Games industry M&A across all sectors hit another record this month, topping $25 billion in total between January and July 2016 with latest $4.4 billion acquisition of Playtika by a Chinese consortium led by Giant. This is yet another sign of late stage games market consolidation, as Digi-Capital forecasts games software revenue growth for the games market as a whole slowing to 7% CAGR from $91 billion in 2016 to $116 billion by 2020. Combined with changing growth rates across different games sectors, there could be more big acquisitions before the end of the year.