Tracxn Virtual Reality Startup Landscape Report, July 2016

Virtual Reality Report, July 2016
Tracxn
World’s Largest Startup Research Platform
2

Contents
Topic Page No.
Scope of Report 05
Entrepreneur Activity 07
Investment Trend 09
Who is Investing 17
Exit Outlook - IPO, Acquisitions 21
Sub Sector Analysis 24
Interesting Companies 39
VR Sector Analysis 45
Useful Links 50
Company List 52
Team 231
3
3

Illustrative Sectors We Track
ENTERPRISE
INFRASTRUCTURE
ENTERPRISE
APPLICATIONS
MOBILETECHNOLOGY
CONSUMER FINTECH EDUCATION HEALTHCARE
SECURITY
STORAGE
NETWORKING
MOBILITY
IT OPS
CLOUD INFRASTRUCTURE
API MANAGEMENT
BIGDATA INFRASTRUCTURE
SAAS
MOBILE-FIRST ENT. APPS
INTELLIGENT ENT. APPS
OPEN SOURCE
RETAIL TECH
MARKETING TECH
STEALTH MODE
VERTICAL SAAS
MOBILE COMMERCE
MOBILE PAYMENTS
MOBILE MARKETING
MOBILE DEV TOOLS
MOBILE HEALTH
MOBILE GAMING
MOBILE LEARNING
MOBILE COMMUNICATION
INTERNET OF THINGS
VIRTUAL REALITY
CONSUMER ROBOTICS
WEARABLE TECHNOLOGY
SMART HOMES
DRONES
SMART CARS
3D PRINTING
FOOD TECH
SECOND HAND GOODS
BITCOIN
PAYMENTS
EDUCATION IT
SELF LEARNING
LIFE SCIENCES
DIGITAL HEALTH

Sector Overview
Scope of report
This report covers companies providing virtual reality devices, technology, applications and content. Over $1.85B invested since 2010,
with ~ $428M invested in 2016 YTD. 250+ rounds of funding between 2014 – till date. Device manufacturers and Content providers are
the top two funded sectors.
• Device manufacturers funding ~ $1.01B
• Content providers funding ~ $493M
Most active funds & no. of companies funded
• Rothenberg Ventures (Matterport, FOVE, 8i) - 29
• BoostVC (8i, Janus VR, Surreal) - 18
• IntelCapital (Avegant, Eyefluence, Voke) – 10
Notable investments in 2016
• MindMaze (Application - Medical) - $100M, Series A from Hinduja Group – Feb 17, 2016
• Razer (developer of VR head mounted display and open-source software plugins through OSVR) - $75M, Series C funding from
Hangzhou Liaison Interactive - Feb 22, 2016
• Penrose Studios (Content provider) - $8.5M, Seed funding from Accelerate-IT Ventures, TransLink Capital, 8 Angel, Suffolk Equity and
several angel investors - March 10, 2016
• FOVE (VR headset manufacturer) - $11M, Series A funding from Colopl VR Fund, the venture fund of Hon Hai (Foxconn), 2020 and
Samsung Venture Investment - March 23, 2016
The scope of this report includes equity as well as debt funding received by the companies.

Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Interesting Companies
VR Sector Analysis
Useful Links
Company List
Team

YoY – Number of companies founded
35
27
47
94
226
293
23
0
70
140
210
280
350
2010 2011 2012 2013 2014 2015 2016
No.ofCompanies
Wevr Matterport MindMaze JauntVR AntVR Baofeng Mojing SPACES
Leap Motion Aquifi Oculus VR uSens Mojing penrose Luminous Group

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

YoY – Number of Rounds and Total Funding
$40M $36M
$20M
$160M
$70M
$246M
$189M
$734M
$428M
6
7 8 22
31 32
72
147
34
0
32
64
96
128
160
0
160
320
480
640
800
2008 2009 2010 2011 2012 2013 2014 2015 2016
NumberofRounds
FundingAmount(inMillions)
Funding Amount Number of Rounds
• The trend indicates that there is an increase in the average funding ticket size as select companies are securing higher
amounts of funding
Note: The funding includes debt rounds also.

YoY – Number of Rounds by Stage

YoY – Funding by Stage

Average Ticket Size – Early Stage

Top investments in last one year

Funnel view of Sector

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Most Active Investors in Sector
33
19
11
9 9
6 6
5 5 5
0
5
10
15
20
25
30
35
Rothenberg
Ventures
Boost Intel Capital Google Ventures Qualcomm
Ventures
Andreessen
Horowitz
Samsung Venture
Investment
Corporation
AIB Seed Capital
Fund
Benchmark Capital-E
Partners
TotalNumberofCompanies
Vicarious Surgical SPACES Voke JauntVR 360fly Lytro Wevr Movidius Linden Lab Movidius
Virtual Reality Co. Surreal VR Occipital High Fidelity Matterport Oculus VR 8i gizmozstudio

Where are Top Investors investing

Top Investor by Stage of Entry

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Top IPOs in last three years
IPO Date Company
Overview
Investors
Funding
Amount
Mcap at IPO
Exch:Ticker
06-04-2010 vuzix.com
Vuzix
(Rochester, 1997)
Video Eyewear products
Intel $25.81M OTCBB:VUZI
16-11-2011 invensense.com
InvenSense
(San Jose, 2003)
Motion processing solutions
Artiman, Qualcomm Ventures, Partech Ventures, Sierra Ventures $38M INVN
vrway.com
VRWay Communication
(Lugano, 1999)
VR media company VRW
kogeto.com
Kogeto
(New York City, 2010)
Panoramic Video Camera Manufacturer $1.87M KGTO

Major Acquisitions in last one year

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

June 2016Tracxn BlueBox : Virtual Reality
800+ companies in the sector, 183 funded in last 5 years, $1.1B invested in 2015-16

Top Business Models by Funding
$1B
$493M
$238M $230M
0
200
400
600
800
1000
1200
Device Manufacturers Content Technology Provider VR Applications
TotalFundingAmount(inMillions)
# Cos. 171 241 63 362
Avg. Age 2012.6 2013 2010.6 2012.9
Lytro
Razer Inc
JauntVR
CCP Games
Movidius
InvenSense
MindMaze
gizmozstudio

Device Manufacturers – Business Model
Description

Device Manufacturers – Entrepreneur Activity and
Investment Trend

Device Manufacturers – Most Funded Companies

Content – Business Model Description

Content – Entrepreneur Activity and Investment
Trend

Content – Most Funded Companies

Technology Provider – Business Model
Description

Technology Provider – Entrepreneur Activity and
Investment Trend

Technology Provider – Most Funded Companies

VR Applications – Business Model Description

VR Applications – Entrepreneur Activity and
Investment Trend

VR Applications – Most Funded Companies

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Interesting Seed Companies
Company Overview Business Model
Total
Funding
solfar.com
Solfar Studios
(2014, Reykjavik)
Virtual reality game development studio
Reaktor Ventures, Inventure Oy, NSA Ventures, Shanda Group
Content - Studio - Games $2.1M
absentiavr.com
Absentia Virtual Reality
(2015, Mumbai)
Virtual Reality head gear
Astarc Ventures, 50K Ventures
Device Manufacturers - Display
Devices - Head Mount Devices
$200k
wearvr.com
WearVR
(2014, Atlanta)
A place to discover games and experiences for virtual reality devices
Content - App Store $1.5M
Curated list of companies by the sector analyst are defined as Interesting

Interesting Series A Companies

Interesting Late Stage Companies

Top Funded Deadpooled Companies

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

VR Sector Analysis
Current Adoption: VR applications in both consumer and enterprise domain are getting more attention due to increase in
adoption & availability of VR display devices. Some of the sector specific application areas are mentioned below.
1. Gaming: Virtual reality games are already popular and players can interact in more immersive way than the traditional
gameplay.
2. Retail: VR based applications help brands to advertise products in 360 degree view and also create “virtual stores” for more
personalized and engaging buying experience. For interior decoration and e-commerce companies, such application shows
potential buyers a preview of how their purchases would look in a real world setting. This type of solution enables
customers to take more informed decision for the purchases resulting in reduced product return rates.
3. Real Estate: Real estate applications help designers to render their design in 3D (before the building is actually built) and
also enables potential buyers to view both the interior and exterior look of the building before it is constructed.
4. Education: VR based applications help students to visualize the lessons (any historic event, geographical place, interaction in
Life science, Physics and Chemistry etc.).
5. Travel & Tourism: Virtual tour applications are becoming popular in the Tourism sector and viewers can get the feel of the
places while not being present in reality.

VR Sector Analysis

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Useful Links
Slide Title Content Platform Link
List of All Companies in readable format Companies Link
Large Upcoming Sectors Entrepreneur Activity Link
Niche Upcoming Sectors Entrepreneur Activity Link
Top investments in last one year Investment Trend Link
Top IPOs companies Exit Outlook - IPO, Acquisitions Link
Major Acquisitions in last one year Exit Outlook - IPO, Acquisitions Link
Device Manufacturers – Most Funded Companies Sub Sector Understand Link
Technology Providers – Most Funded companies Sub Sector Understand Link
Content Providers – Most Funded Companies Sub Sector Understand Link
VR Applications developer – Most Funded Companies Sub Sector Understand Link
Top Funded Deadpooled Companies Companies Link

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Virtual Reality – Company List
DETAILS CLOSE TO 840 COMPANIES
(202 FUNDED COMPANIES)
COVERS THE FOLLOWING SECTORS
Device Manufacturers Technology Providers Content Providers VR Applications Horizontal

Device Manufacturers (1/37)
53
Device Manufacturers Technology Provider Content Providers VR Applications Horizontal
Company Details Funding Investors
Device Manufacturers
VRK Virtual Reality [Sydney, 2015]: VRK develops Virtual Reality headsets. Its product portfolio includes
custom designed Google Cardboard based on the latest 2.0 version, VRK Smartphone Goggles and Oculus
Ready PCs for the coming Oculus Rift. Also the company offers Virtual Reality apps and games for iPhones
and Android phones.
FLYBi [Hexham, 2014]: Advanced Robotix Corp. has designed a flying drone, FLYBi, that comes with a set of
Virtual Reality goggles. These head-tracking goggles provide a direct control to user to look around using
the HD camera installed at the base of drone. This drones is available is four different colors, have features
like obstacle detection and avoidance, auto return and collision tolerance. It carrying case includes its
controller and an extra-pair of batteries. Raised $40k on a campaign goal of $35k on Indiegogo (a global
crowdfunding platform) with 13 days remaining in the campaign deadline.
OET (Oxxon Enterprises Technology) [New York City, 2012]: OET is developing consumer electronics'
hardware using innovative technologies. Currently in stealth mode. Plans to launch by early 2016.
Device Manufacturers -
Display Devices - Head Mount
Devices
Razer Inc [Irvine, 1998]: Razer partnered with Sensics to build OSVR, an open source VR head mounted
display and open-source software plugins that enables programming for any variety of VR technology.
Released a modular ‘Hacker Dev Kit’ of the OSVR hardware, which is currently available for $300. Partnered
with Chinese Software Giant Qihoo 360 in July'15, for OSVR supported content to be made available to
Chinese user base. Intel also announced a deal with Razer, in Aug'15, to supply the innards of its consumer
ready 3D cameras for gamers.
$125M
IDG, Accel Partners, Liaison
Interactive, Intel Capital

Devices
Oculus VR [Irvine, 2012]: Oculus is a American Virtual reality hardware technology development company.
The company designs and sells Virtual reality head mounted devices. The company also designed and sells
Samsung Gear VR. Offers Oculus SDK for developers to build VR apps. The company was founded by Palmer
Luckey and veterans of RedOctane, developers of the acclaimed Guitar Hero series, Scaleform, and Gaikai,
the cloud gaming company. Raised $2.4M on Kickstarter for pre orders of Oculus Rift. Was acquired by
Facebook Inc. in march 2014 for $2B. Acquired 13th Lab &; Nimble VR in 2014 and Surrel Vision &; Pebbles
Interfaces in 2015. Announced GearVR along with Samsung, to be launched in Nov'15. Its controller Oculus
Touch is announced to be launched in Q2 2016. Partnered with Asus, Intel, Dell and Alienware to get
“Oculus Ready” computer to under $1000.
$91M
Formation, Andreessen Horowitz,
Matrix Partners, Spark Capital
Devices
AntVR [Beijing, 2014]: AntVR provides a set of VR hardware which are compatible with applications
designed for Oculus Rift as well as other PC and console platforms. In addition to open-sourcing its
hardware, ANTVR Technology also provides SDK to software developers so they can create games for the
kit. Raised $260k for pre-orders on Kickstarter in June'14. Stanford professor Shoucheng Zhang joined as
chief scientist in 2014. Head mounted devices costs user $240. The company has also developed a VR
headset for smartphone called "TAW". The cost of smartphone VR headset is $25.
$56M
Gosuncn Technology Group, Sequoia
Capital
Devices
Avegant [Redwood City, 2012]: Avegant has developed display devices which can be head-mounted. Their
first product Glyph is a headphone type device with Virtual Retinal Displays that project comfortable light
onto the eyes instead of a LCD screen. The device can also be used as a headphone for audio. The
headtracker bluetooth stack communicates with low latency to multiple devices. Currently working to
develop plugins for Unity, Unreal and other gaming platforms. Available for Pre order at $499 on their
website, will be launched in late 2015. Raised $1.5M on Kickstarter. Was named as one of 24 companies to
be named a 2015 Technology Pioneer by the World Economic Forum. Raised $24M in Aug'15, to develop
retinal imaging technology and launch Glyph.
$36.73M
NHN Investment Co., Ltd., Kaiwu
Capital, 500 Startups, Intel Capital,
Michigan Angel Fund, N Capital
Devices
DeePoon [Shanghai, 2014]: Deepoon develops VR HMD: VIRGlass, smartphone-based HMD and Deepoon,
a PC based HMD. Currently focusing on Deepoon, which features Samsung’s AMOLED screen, Fresnel
lenses and is compatible with Oculus Rift DK2 content (due to the lack of VR content developers in China).
Developed its own SDK solutions and a Chinese VR content platform called 3D bobo with content on 3D
movies, images, VR games and videos. It raised ~1M Yuan for the Deepoon device and is also a portfolio
company of SkyChee Ventures.
$30M
Hollysh, Double safeguard, Xunlei
Networking Technologies

Devices
Vuzix [Rochester, 1997]: Vuzix is a leading supplier of Video Eyewear products in the consumer,
commercial and entertainment markets. Products include display and wearable devices that provide
solutions for mobility, wearable displays and virtual and augmented reality. Holds 39 patents and IP
licenses in the Video Eyewear field. Vuzix is a public company, with offices in Rochester, NY, Oxford, UK and
Tokyo, Japan.
$25.81M Intel
Devices
CastAR [Mountain View, 2013]: CastAR, by Technical Illusions, is developing glasses for both AR &; VR,
which enables users to experience interfaces that are natural, responsive, and embedded in the physical
world. User can pre-order the glasses and controller on their website for $400. Will be available from Q4
2015. Raised $1M on kickstarter in 2013. In Aug'15, Android creator Andy Rubin's firm Playground Global
invested $15M. Founders are ex- Valve Software.
$15M Playground Global
Devices
FOVE [San Francisco, 2014]: FOVE developed a VR eye tracking VR headset. Also provides SDK to
developers, which integrates content from Unity, Unreal Engine, and Cryengine. Started in University of
Tokyo, and is currently developing the hardware in Japan's top laboratories, with cooperation from
Samsung and Toshiba. Raised $480K on kickstarter in 2015. Founding team includes game producer from
Sony Computer Entertainment. Has branches in Japan and USA. Costs users $400-$500, and plans to ship
Q1 2016.
$11.1M
Microsoft, Samsung Venture
Investment Corporation, Rothenberg
Ventures, http://colopl.co.jp/, 2020
Ventures, Foxconn
Devices
3Glasses [Shenzhen, 2014]: 3Glasses provides VR headsets, SDK and motion capture devices, for
applications in VR. Also launched VR games and virtual travelling spots. Officially debuted in July'14, at the
12th ChinaJoy Expo &; Conference, in collaboration with Unity. Introduced their first mass-produced 2K
Virtual Reality headset in June'15. Costs user $354 for the device. Partnered with Chunshuitang, online
adult store in China, in July'15. Raised $4.7M in 2014, where lead investor took over 80% investment ratio.
Currently, round B of financing is closing. Being acquired by 4 companies, as of July'15. Focused in Asia and
plans to acquire new business in Europe and North America.
$4.7M

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VR Applications (1/75)

Horizontal

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
VR Sector Analysis
Useful Links
Company List
Team

Team
Tanmoy Mondal
Lead Analyst, Technology
Vijaya Bhaskar Rao
Lead Analyst, Technology

Tracxn Virtual Reality Startup Landscape Report, July 2016

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