Based on the enthusiasm and excitement users and investors of virtual reality headsets have shown, it is certain that this is the next big thing in the technology sector. Most virtual reality startups are striving to improve customer experience, unfortunately, the majority of the general public have never used any of the virtual reality technology products. Nonetheless, Magic Leap, has its target set on raising $827 million; Jaunt – 3D camera maker, has raised $100 million; while And 8i – a technology company, has raised about $15 million. These developments have encouraged investors to put more money in the sector, with growing optimism that these products will reshape the way we communicate, entertain, and do our work.
Most investors truly believe that smart headsets are the next platform to change the way most things get done. The price of the headsets is expected to range between $300 and $500, and that does not include the $1000 or more for a powerful PC which most headsets will require.
Forest Key, CEO of Pixvana, said that virtual reality headsets have the potential of improving the way people communicate and get entertained. The headsets can also be used for conference meetings, online education and video games. The prices of these products have been significantly reduced because of price reductions of several components that are used in conjunction with the headsets such as high-quality motion sensors and screens.
Big companies such as Google, Sony and Microsoft have also made big investment bets in the virtual reality sector, making it more appealing to other venture capitalists. The industry became even more lucrative last year when Facebook purchased Oculus for $2 billion. According to CB Insights, a venture capital investments research firm, virtual reality companies raised $408 million within the first 9 months of 2015. This was an increase from the $145 million raised during the same period in 2014. The firm also estimated that about $1.5 billion have been raised by virtual reality companies since 2012.
Magic Leap is among the biggest players in the sector. The company raised $542 million last year, an investment that was led by Google. Two smaller startups, nDreams (UK-based creator of virtual reality games) and Pixvana (Seattle-based virtual reality startup) will be launching their funding on Monday, 21st December 2015. Just recently, Pixvana raised $6 million while nDreams raised $3 million to finance their virtual reality games development and production.
All investment bets and commitments made by companies and individuals in this sector have made it more enticing, with promises of brighter and better times ahead for both developers and investors.