New investors materializing to back VR/AR startups
February 24, 2016
When firms and funds that specifically target a certain industry start popping up, you know big things are coming. This has been exemplified with all the current hot markets. Over the past few years we’ve seen Rakuten launch a fintech-focused fund, a16z announce its bio fund and firms like Blockchain Capital spin up to invest in cryptocurrencies and the tech behind them.
The virtual reality/augmented reality industry seems to be next in line, as highlighted in our Virtual Reality Analyst Report. While existing firms like Rothenberg Ventures and Boost VC are leading the way in backing pioneering companies in this up-and-coming space, new VCs and programs are launching to support the increasing number of companies being founded.
Just this week, Super Ventures announced the launch of an AR-focused incubator, as well as a $10 million fund that will look to invest in startups that believe AR, VR and wearable technology will overtake personal computing as the next platform. The firm has already made several investments in the space, including Waygo, a visual translation app specializing in Asian languages, and Fringefy, a visual search engine that helps people discover local content and services.
As the year progresses, don’t be surprised to see more of these VR/AR focused firms and funds emerge. The combination of acquisition potential by large tech giants—exemplified by Facebook’s $2 billion buy of Oculus—and VR/AR tech slowly being introduced to the consumer market will act as blood in the water, and new investors will be circling to get in on the action.