keraj37
Member
SOURCE
Well, as a low bottom consumer I see it all more less with same results. VR is just not yet there, and it is not that easy to make it "there" despite what financial and marketing sharks think.
VCs are showing a diminished appetite for virtual and augmented reality startups this year compared to last. Both the number of funding rounds and total investments made into the space have slowed down in Q1 2017.
According to Crunchbase data, a total of 26 companies with AR or VR-focused businesses raised a disclosed funding round in the first quarter of this year. Together, the firms raised just over $200 million in Q1 2017. That result compares to 29 companies in Q1 2016 raising just over $1 billion. Q1 2017 also marks the lowest quarterly number of financings and investment total in over a year.
In the chart below, we look at financings totals for augmented and virtual reality startups for the past five quarters. The spike in Q1 2016 is largely due to a single financing, a Series C round of nearly $800 million for cinematic VR technology developer Magic Leap. That single round is more than four times the size of any other VR-related funding.
Still, theres some disappointing news about the nascent market for VR technology lately that could be turning off investors. Facebook-owned Oculus, for instance, hasnt delivered on expectations. The VR gaming system developer closed hundreds of live demo stations at Best Buy stores earlier this year due to lack of customer interest. It also recently slashed prices following below forecast sales.
Magic Leap, the highest profile venture-backed VR company, has also been getting some bad publicity. Reports claim that companys technology has been oversold to investors.
Overall, the global VR industry posted mixed results last year, as initial sales volumes by some high-end manufacturers didnt live up to the hype, according to a new report from research firm Greenlight Insights. Low cost headsets did better, with the PlayStation VR and Samsung Gear VR among the top sellers. Greenlight expects VR will make good progress in coming years, however, and will grow into a major global market by 2021.
Well, as a low bottom consumer I see it all more less with same results. VR is just not yet there, and it is not that easy to make it "there" despite what financial and marketing sharks think.