The Virtual Vision Thing

June 13, 2017

CB Insights published a handful of interesting graphs recently on VR and AR funding. We've highlighted a couple of interesting ones here.

The number of AR/VR funding deals (shown by the light blue line in the chart above) has been rising pretty steadily over time, with a sharp uptick in the first quarter of this year. So there's clearly increasing appetite for the technologies amongst investors. Dollars have been rising too, but at a slower pace (especially if you take out the massive spikes in Q4 2014 and Q1 2016 that reflect two mega-funding deals for Magic Leap, which has attracted lots of hype).

These are still very early days in the industry's evolution, a fact that is reinforced by another of CB Insight's charts which shows that over two-thirds of deals in the first quarter of 2017 were Series A investments (see below).

The availability of less costly gaming engines, image capture and creation software, and other tools are lowering the barriers to starting and building young VR/AR companies. But we still see large gaps in infrastructure and enabling technologies, not to mention a lack of widely populated platforms of users. So there's likely to be larger bursts of early stage activity over the next few years as these critical layers develop.

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