Virtual Reality start-ups see funding rise to $533 million in 2016
Many companies such as Intel, Samsung, Apple and even Snapchat have either acquired or invested in VR start-ups.
Virtual Reality (VR) start-ups have raised $533 million so far this year, a Tracxn report said. The number stood at $690 million from 153 rounds in 2015.
Funding to VR start-ups saw a massive 277% jump in 2015 as it rose to $690 million from just $183 million in 2014.
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A majority of the funding came in the early stage round followed by the late stage. Early stage funding accounted for $400 million in 2016, while late stage funding was $85 million and seed funding raised only $46 million.
The average ticket size for funding of series B early stage was the highest at $31.8 million.
In 2016, the Hinduja Group had made the highest investment in a VR start-up by funding $100 million to MindMaze in February. Start-up NextVR managed to raise $80 million in August this year from investors led by Softbank.
The most active investors in the VR space has been Rothenberg Ventures that has funded start-ups such as JauntVR and Matterport. Boost VC, Techstarts, Intel Capital and Qualcomm Ventures follow in terms of VC funding in this space.
Electronics giant too has been looking at this space keenly as VC arm Samsung Venture Investment has invested in 7 start-ups in this segment including Wevr, Replay Technologies, Bubl and FOVE.
Intel, on the other hand, has been more active in the acquisition space rather than investing. In September it acquired Movidius, a company that develops mobile vision processor chips, with total funding of $86.5 million. Intel also acquired Replay Technologies for $175 million in March this year.
Snapchat had also acquired two VR start-ups Obvious Engineering and Seene for undisclosed amounts. Apple acquired Faceshift in November this year for an undisclosed amount.
VR hardware companies have received the most funding during the year totaling for $1 billion. This includes well known VR headset manufactures such as Oculus VR and Lytro.