AR/VR investment hits $1.1 billion already in 2016

March 7, 2016

Digi-Capital AR-VR investment Q1 2016 to date

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. (See analysis of last year’s investment here)

Nearly $800 million came from the monster Magic Leap round, but another $300 million went into AR/VR solutions/services, VR hardware, advertising/marketing, distribution, video, peripherals, apps and games. Even without Magic Leap, investment is up 20% in Q1 2016 compared to the $250 million invested in Q4 2015. Plus there’s another 4 weeks left for investors to boost AR/VR this quarter.

Some of the other investments in 2016 so far include:

  • Mindmaze raising $100M at a $1B+ valuation to became the fourth AR/VR unicorn (together with Magic Leap, Oculus and Blippar)
  • Blippar raising $54M. It was already valued at $1.5 billion from its previous round in 2015
  • Many other platform and app investments across Digi-Capital’s AR/VR Deals database (all AR/VR investments and M&As since 2011), including WEVR raising $25M

We’re now seeing the creation of dedicated early stage AR/VR funds, such as the Colopl VR Fund with $50M to invest. We note that amounts committed by Limited Partners to AR/VR funds are not included in the $1.1B number – that number is the amount invested into companies directly. In other words, there is more money in the AR/VR investment ecosystem looking for great portfolio companies.

With $120 billion revenue forecast to come from AR/VR by 2020, investors have a clear eye on the future.