A report providing an overview of the Virtual Reality (VR) startup landscape, graphical trends and insights, and recent funding and exit events. Contact info@venturescanner.com to learn more!
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Venture Scanner VR Report Q1 2017
1. Venture Scanner is your analyst and technology-powered startup research firm
March 2017
Virtual Reality
Startup Market Trends and Insights
2. Virtual reality technology report outline
2
This report provides an overview of the virtual reality technology sector and
is broken down into three sections
Sector Description
High-level sector metrics
with sub-category
definitions
Trends & Insights
Infographics and data
points for the virtual reality
sector
Quarterly Activity
Major funding and exit
events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup
database and research platform
4. Virtual reality startups are creating new businesses in 13 categories
4
Virtual Reality
Technology
Learn about our full 653 company
report with $4.7B in funding
The graphic above shows a sampling of companies in each category, stats as of March 2017
3D Modeling Enterprise Virtual Reality Medical Virtual Reality Virtual Reality Analytics Virtual Augmented Reality
Virtual Environment Content
Virtual Cinema Creation
Virtual Cinema Content
z
Consumption Hardware Creation Hardware Enabling Software Virtual Reality Publishing
z
Virtual Environ. Creation
5. 5
Innovation quadrant for virtual reality
AVERAGE FUNDING ($M)
AVERAGEAGE(YEARS)
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
This quadrant shows a relative segmentation of the categories with respect to one another, March 2017
Virtual
Augmented Reality
Enabling
Software3D Modeling
Enterprise VR
Virtual Environment
Creation
VR Creation
Hardware
VR Analytics
Medical VR
VR Publishing
Virtual Cinema
Creation
Virtual Cinema
Content
VR Consumption
Hardware
Virtual Environment
Content
6. Virtual reality startups play in many different categories (1 of 2)
6
3D Modeling
50 Startups, $145M Total Funding
Companies that enable users to capture and render
objects in 3D
Category stats as of March 2017
Medical/Health Virtual Reality
46 Startups, $79M Total Funding
Companies that utilize VR for medical purposes,
including fitness simulations and meditation spaces
Virtual Cinema Content
106 Startups, $663M Total Funding
Companies that sell professional-quality VR films and
videos to be viewed by customers
Virtual Environment Content
257 Startups, $1B Total Funding
Companies that sell VR environments for a user to
experience, such as video games and classrooms
Enterprise Virtual Reality
97 Startups, $94M Total Funding
Companies that utilize VR for business purposes,
including virtual work rooms and data visualizations
Virtual Augmented Reality
111 Startups, $1.9B Total Funding
Companies that create augmented reality solutions,
such as social games that interact with the real world
Virtual Cinema Creation Platforms
41 Startups, $241M Total Funding
Companies that enable users to create VR videos,
such as motion capture and production software
Virtual Environment Creation Platforms
67 Startups, $455M Total Funding
Companies that enable users to create VR
environments, such as for video games
7. Virtual reality startups play in many different categories (2 of 2)
7
Virtual Reality Analytics
16 Startups, $54M Total Funding
Companies that provide analytics for VR, such as
gaze tracking heat maps
Category stats as of March 2017
Virtual Reality Creation Hardware
80 Startups, $532M Total Funding
Companies that produce the hardware needed to
capture VR visual information
Virtual Reality Publishing/Discovery
39 Startups, $176M Total Funding
Companies that enable users to distribute their VR
content and make it discoverable by others
Virtual Reality Consumption Hardware
88 Startups, $655M Total Funding
Companies that produce the hardware needed to
consume VR content and environments
Virtual Reality Enabling Software
66 Startups, $456M Total Funding
Companies that provide software for the
development of VR, such as video processing tools
9. 9
Investing into virtual reality happens in a variety of categories
The Virtual Augmented Reality category accounts for 29% of venture funding
and 10% of total companies in the virtual reality technology sector
Venture Investing in Virtual Reality
Companies are categorized by function, and therefore can exist in multiple categories. March 2017
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50
100
150
200
250
300
0.0
0.2
0.4
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0.8
1.0
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1.4
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1.8
2.0
CompanyCount
TotalFunding($B)
VC Funding Count
10. 10
VC funding into virtual reality has grown significantly in recent years
Overall virtual reality VC funding grew at a CAGR of 79% from 2011-
2016
Virtual Reality Funding Over Time
Data as of March 2017
0.0
0.5
1.0
1.5
2.0
2.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
11. 11
Virtual reality funding events in 2016 were mostly Series C rounds
Virtual Reality Funding Amount By Round
Series C rounds account for 69% of the virtual reality funding amount in 2016
Graphs shows only the funding rounds listed therein. Data as of March 2017
0.0
0.2
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0.6
0.8
1.0
1.2
1.4
1.6
1.8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed
12. 12
Virtual reality startups founded in 2011 lead in VC funding
Startups founded in 2011 account for 44% of the sector funding over the last
decade, and include companies like Magic Leap, Niantic, and Noitom
Virtual Reality Funding By Vintage Year
Data as of March 2017
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
Year Founded
13. 13
Virtual reality startups are a global phenomenon
Virtual Reality Startup Count by Country
0 325
Companies
Data as of March 2017
14. 14
Top VC investors are making bets into the virtual reality sector
Selected Investor Activity in Virtual Reality
The above count represents a subset of overall investor activity, March 2017
0
2
4
6
8
10
12
14
NumberofInvestments
Number of Investments Number of Companies Backed
15. 15
Virtual reality exit activity has just begun
Exit events within virtual reality are starting to happen across
a variety of categories
Virtual Reality M&A and IPO Events By Category
Data as of March 2017
0
1
2
3
4
5
NumberofExits
Public Acquired
17. 17
Recent virtual reality funding statistics
There have been 38 virtual reality funding events since Dec 2016
Recent Virtual Reality Funding Round Counts
Graph shows only the funding types listed therein, March 2017
0
2
4
6
8
10
12
Seed Series A Series B Series C Series D Late Stage
FundingEventCount
18. 18
Recent virtual reality funding events
Notable Recent Virtual Reality Funding Events
Company Funding Type Amount Date
Series D $60,000,000 Feb 15, 2017
Series A $58,000,000 Dec 1, 2016
Series C $50,000,000 Dec 13, 2016
Series C $30,000,000 Dec 19, 2016
Series B $27,000,000 Feb 13, 2017
Virtual reality startups raised $409 million since December 2016
Data as of March 2017
19. 19
Notable recent virtual reality exit events
Notable Recent Virtual Reality Acquisitions
Company Acquirer/IPO Date
Feb 20, 2017
Jan 1273, 2017
Jan 12, 2017
Dec 28, 2016
Dec 5, 2016
There have been 6 exit events since December 2016,
all of which have been acquisitions
Data as of March 2017
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