AR/VR Dealmakers Invested over $800 million in Q2

By Alan Spencer
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According to Digi-Capital’s latest report, AR and VR investors laid out over $800 million in the second quarter of this year up on Q1. For the last 12 months, over $2 billion has been invested throughout the 27 AR/VR sectors. The four other big investment sectors were video, games, peripherals and smart-glasses, which together with tech accounted for just under 90% of all AR/VR investment.

Whilst the record for investment was $1.2 billion in the first quarter last year, with $2.4 billion for the 12-month period, Q2 of this year saw an investment record for a quarter when Magic Leap, with its head-mounted virtual retinal display development, was not taking all the cash.

Digi Capital Mobile AR VR Investment LTM to Q2 2017 1Digi Capital Mobile AR VR Investment LTM to Q2 2017 – Click for high resolution

Later stage deals accounted for most of the investment money but AR/VR investment saw the highest volume of investments from pre-seed through Series A. However, Facebook’s Camera Effects Platform and Apple ARKit for iOS, which may feature in some form in the iPhone 8 release, look set to turn attention to the mobile AR developer ecosystem.

Digi-Capital forecast $60 billion revenue for mobile AR in five years’ time and over a billion users and, the big changes brought about by Apple, Facebook, Google and others, is set to change how we see the world. If AR/VR investment dealmakers pick the right opportunity at the right time, that would make them “the geniuses and visionaries of tomorrow”.

Digi Capital AR VR Dealmakers 4Digi Capital’s graphic of AR VR Dealmakers – Click for higher resolution