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March 2017

Virtual RealityStartup Market Trends and Insights

Virtual reality technology report outline

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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

Virtual Reality Technology Sector Description

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Virtual reality startups are creating new businesses in 13 categories

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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

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Consumption Hardware Creation Hardware Enabling Software Virtual Reality Publishing

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Virtual Environ. Creation

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Innovation quadrant for virtual reality

AVERAGE FUNDING ($M)

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ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

This quadrant shows a relative segmentation of the categories with respect to one another, March 2017

VirtualAugmented Reality

Enabling Software3D Modeling

Enterprise VRVirtual EnvironmentCreation

VR CreationHardware

VR Analytics

Medical VRVR Publishing

Virtual CinemaCreation

Virtual CinemaContent

VR ConsumptionHardware

Virtual EnvironmentContent

Virtual reality startups play in many different categories (1 of 2)

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3D Modeling50 Startups, $145M Total FundingCompanies that enable users to capture and render objects in 3D

Category stats as of March 2017

Medical/Health Virtual Reality 46 Startups, $79M Total FundingCompanies that utilize VR for medical purposes, including fitness simulations and meditation spaces

Virtual Cinema Content 106 Startups, $663M Total FundingCompanies that sell professional-quality VR films and videos to be viewed by customers

Virtual Environment Content257 Startups, $1B Total FundingCompanies that sell VR environments for a user to experience, such as video games and classrooms

Enterprise Virtual Reality97 Startups, $94M Total FundingCompanies that utilize VR for business purposes, including virtual work rooms and data visualizations

Virtual Augmented Reality 111 Startups, $1.9B Total FundingCompanies that create augmented reality solutions, such as social games that interact with the real world

Virtual Cinema Creation Platforms41 Startups, $241M Total FundingCompanies that enable users to create VR videos, such as motion capture and production software

Virtual Environment Creation Platforms 67 Startups, $455M Total FundingCompanies that enable users to create VR environments, such as for video games

Virtual reality startups play in many different categories (2 of 2)

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Virtual Reality Analytics16 Startups, $54M Total FundingCompanies that provide analytics for VR, such as gaze tracking heat maps

Category stats as of March 2017

Virtual Reality Creation Hardware80 Startups, $532M Total FundingCompanies that produce the hardware needed to capture VR visual information

Virtual Reality Publishing/Discovery 39 Startups, $176M Total FundingCompanies that enable users to distribute their VR content and make it discoverable by others

Virtual Reality Consumption Hardware88 Startups, $655M Total FundingCompanies that produce the hardware needed to consume VR content and environments

Virtual Reality Enabling Software66 Startups, $456M Total FundingCompanies that provide software for the development of VR, such as video processing tools

Virtual Reality TechnologySector Trends & Insights

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Investing into virtual reality happens in a variety of categories

The Virtual Augmented Reality category accounts for 29% of venture fundingand 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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VC Funding Count

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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

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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

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Late Stage Series D Series C Series B Series A Seed

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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

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Virtual reality startups are a global phenomenon

Virtual Reality Startup Count by Country

0 325Companies

Data as of March 2017

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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

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Number of Investments Number of Companies Backed

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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

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Virtual Reality TechnologyQuarterly Notable Events

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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

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Seed Series A Series B Series C Series D Late Stage

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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

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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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