VR Q1 2018 Startup Highlights

Q1 Startup Highlights
VIRTUAL REALITY
June 2018

Quarterly virtual reality highlights
2
This brief overview of the virtual reality sector provides three sections
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SectorSummary
Macro-level viewson the
state of the virtual
reality sector
LatestActivity
Major funding and exit
events from the previous
quarter
CategoryDiscovery
Deep dive into a single
virtual reality
category

VIRTUAL REALITY
13 Categories
733 Companies
$10B Funding
4Sector stats are continuously changing,data cumulativethrough March 2018

The graphic above shows only a sampling of companiesin each category. Data cumulativethrough March 2018
VirtualEnvironmentCreation
(69Companies)
VR ConsumptionHardware
(99Companies)
VR CreationHardware
(92Companies)
VR EnablingSoftware
(79Companies)
VR Publishing/Discovery
(43Companies)
3DModeling
(57 Companies)
EnterpriseVirtualReality
(105Companies)
MedicalVirtualReality
(47Companies)
VirtualRealityAnalytics
(20Companies)
VirtualAugmentedReality
(138Companies)
VirtualEnvironmentContent
(279Companies) VIRTUAL REALITY
The Venture Scanner researchplatform
currently tracks 733 virtual reality startups
with $10B in funding
VirtualCinemaContent
(109Companies)
VirtualCinemaCreation
(48Companies)
5

Augmented Reality
VR Consumption Hardware
Environment Creation
Environment Content
VR Creation Hardware
VR Enabling Software
Cinema Content
Cinema Creation
3D Modeling
Enterprise VR
VR Publishing
Health VR
VR Analytics
6
Innovation quadrant for virtual reality
AverageFunding of Companiesin Category
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
AverageAgeofCompaniesinCategory
This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativethrough March 2018
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7
Virtual reality funding experienced explosive growth in recent years
Overall virtual reality funding grew at a CAGR of 111% from 2012-2017
Virtual Reality Annual Funding Over Time
Data cumulativethrough March 2018
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2011 2012 2013 2014 2015 2016 2017 2018
Funding($B)
Q1 Q2 Q3 Q4

8
Virtual reality saw the second highest Q1 funding in 2018
Q1 2018 funding grew by 181% from the funding in Q1 2017
Virtual Reality Quarterly Funding Over Time
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2011 2012 2013 2014 2015 2016 2017 2018
Funding($B)
Q1 Q2 Q3 Q4

9
Virtual reality exit events saw robust growth in recent years
Virtual reality exits grew at a CAGR of 100% from 2013-2017
Virtual Reality Exit Events Over Time
0
2
4
6
8
10
12
14
16
18
2011 2012 2013 2014 2015 2016 2017 2018
ExitEvents(AcquisitionsandIPOs)
Q1 Q2 Q3 Q4

11
Virtual reality funding events were mostly early stage in Q1 2018
There were 14 funding events in Q1 2018, 71% of which were Seed or Series A
Recent Virtual Reality Funding Round Counts
Graph shows only the funding rounds listed therein
-
1
2
3
4
5
6
7
8
Seed A B C D Late Stage
FundingEvents
Funding Event

0
100
200
300
400
500
600
QuarterlyFunding($M)
12
Companies in the Augmented Reality category raised the most funding in Q1 2018
Virtual reality startups raised $665M in Q1 2018,
with Augmented Reality companies raising the most funding at $537M
Quarterly Virtual Reality Category Funding
Companiesare categorized by function, and therefore can exist in multiple categories
Magic Leap raised a $461M Series D
funding round in March 2018

13
Q1 2018 virtual reality funding events
Notable Recent Virtual Reality Funding Events
Company FundingType Amount Date
Series D $461,000,000 Mar 7, 2018
Post-IPO Equity $30,000,000 Jan 25, 2018
Corporate Round $17,200,000 Mar 6, 2018
Series A $14,500,000 Mar 15, 2018
Series A $11,700,000 Feb 7, 2018
The top 5 virtual reality funding events accounted for 80% of quarterly funding

14
Q1 2018 virtual reality exit events
Notable Recent Virtual Reality Exit Events
Company Acquirer/Status AmountRaised Date
Unknown Jan 25, 2018
IPO $8,342,985 Mar 12, 2018
There were 2 virtual reality exits this past quarter, of which 1 was an acquisition

Category Discovery – Virtual Augmented Reality
Every quarter a newcategory will receivea deep dive,providing comparisonsto
other categories and discussingtrends
15

16
Augmented Reality is the most funded category within virtual reality
The Augmented Reality category accounts for 28% of funding in the sector
and saw 18% growth last quarter
Venture Investing in Virtual Reality
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough March 2018
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
GrowthfromPreviousQuarter
Funding($B)
Previous Total Quarterly Funding Percent Growth

17
Augmented Reality companies are generally better funded than their peers
Augmented Reality has a median funding $2M higher than the average of
other categories, and a third quartile that is $5M higher
Virtual Reality Category Funding Quartiles
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough March 2018
0
5
10
15
20
25
30
35
40
45
FundingQuartiles($M)
First Quartile Median Third Quartile

18
Augmented reality funding showed strong growth over the past few years
Overall Augmented Reality funding grew at a CAGR of 145% from 2013-2017,
and 2018 has the second highest Q1 funding on record at $505M
Augmented Reality Total Annual Funding
-
200
400
600
800
1,000
1,200
2012 2013 2014 2015 2016 2017 2018
Funding($M)
Q1 Q2 Q3 Q4

19
Funding within Augmented Reality is heavily concentrated
Augmented Reality Companies with Largest Funding Amounts
Company LatestRound TotalRaised Location
Series D $2,350,000,000 Plantation, FL, USA
Series B $225,000,000 San Francisco, CA, USA
Series B $73,000,000 San Mateo, CA, USA
Series C $60,000,000 Sunnyvale, CA, USA
Series C $57,000,000 Rehovot, Israel
The top 5 Augmented Reality companies by total funding account
for 79% of overall category funding

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VR Q1 2018 Startup Highlights

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