For this quarter's funding analysis, let's examine how average funding in the virtual reality (VR) sector is evolving. The graphic below shows the VR average funding across all deals over time by quarter.
As the graphic demonstrates, virtual reality average funding deal size in Q1 2019 was at $25M, which decreased by 22% from the $32M in the same quarter last year. The average funding deal size has experienced healthy growth, with the average funding last quarter around 4 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $245M round into Niantic, a $68M round into Sandbox VR, and a $58M round into Mojo Vision.
This blog post examines the different components of the virtual reality (VR) ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Virtual Environment Content Is The Largest Virtual Reality Category
Let’s start off by looking at the Sector Map. We have classified 760 VR startups into 13 categories. They have raised $12B from 1097 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Virtual Environment Content is the largest category with 283 companies. These companies create or present computer-generated spatial simulations for the user to experience. Such environments include virtual reality video games, learning platforms, and socializing platforms. Some example companies are VRstudios, Survios, VREAL, and Reality Reflection.
Here is our Q1 2019 summary report on the virtual reality startup sector. The following report includes a sector overview and recent activity.
The virtual reality (VR) industry has seen 1082 investors and $11.4B total all time funding. Let's analyze which VR categories have the most number of investors actively financing the startups. The graphic below highlights VR categories based on the number of investors in each category.
As the graphic demonstrates, Augmented Reality has the highest number of investors at 346, with Environment Content right behind at 320. Augmented Reality companies superimpose a computer-generated environment on the real world. Environment Content companies create or present computer-generated spatial simulations for the user to experience. In addition, the average number of investors across all virtual reality categories is 163.
Here is our Q4 2018 summary report on the virtual reality startup sector. The following report includes a sector overview and recent activity.
Here is our Q1 2018 summary report on the virtual reality startup sector. The following report includes an overview, recent activity, and a category deep dive.