Posts Tagged: augmented reality
Digi-Capital is partnering with Google to host its next Reality Network on Tuesday, May 29th at Google in Mountain View. Reality Network is by invitation only for AR/VR/XR CEOs, corporate VPs, and VC Partners, with numbers limited to keep the signal to noise ratio high. The focus of this Reality Network is on AR/VR/XR Leaders making money and how they’re doing it (appstore premium and IAP, eCommerce, hardware, adspend, enterprise, location based, video, games), as well as industry-wide opportunities and deals (commercial deals, partnerships, investments, M&As). Reality Network is about getting deals done, not a talking shop.
AR/VR/XR startups raised a record over $3.6 billion from VCs and corporates in the last 12 months to the end of Q1 2018. Over three-quarters of a billion dollars was invested in the first 3 months of this year alone. A fundamental transition in the fundraising market towards AR from VR, as well as the very early-stage dynamics of mobile AR, are driving an acceleration of fundraising trends we anticipated at the start of the year. As expected in a transitional year, overall deal volumes declined slightly in the short-term as VCs and corporates look to medium-term mobile AR and long-term smartglasses growth.
AR (mobile AR, smartglasses) could approach three and a half billion installed base and $85 billion to $90 billion revenue within 5 years. At the same time, VR (mobile, standalone, console, PC) might deliver 50 to 60 million installed base and $10 billion to $15 billion. That’s a pretty big difference, and it all has to do with AR’s ubiquity and VR’s focus. (Note: AR/VR adviser [reports/tools, company network, strategy consulting, investment banking] Digi-Capital’s new Augmented/Virtual Reality Report Q1 2018 base case is that even with 900 million installed base for ARKit/ARCore by the end of this year, AR/VR revenue will only start to scale in 2019)
To understand why the sister markets are shaping up so differently, we’re going to dig in to AR and VR’s installed bases, use cases, app store category revenues (IAP/premium), eCommerce category sales, adspend by industry, enterprise revenues by industry, and geographic splits. The devil’s in the detail, and this is the most detailed dive we’ve ever done.