With the unveiling of Apple's Vision Pro headset, investors' interest in the virtual and augmented reality sector has been reignited. Apple is confident that its mixed reality device will bring about a new era in spatial computing, and this belief has led to increased support for startups in the AR, VR, and XR space.
The introduction of the Vision Pro headset has convinced some investors to back companies working in augmented and virtual reality, leading to a surge in funding for AR, VR, and XR startups. In June, these startups in the U.S. raised $208 million, almost as much as the total raised in the previous three months combined, making it an all-time 12-month record.
Despite the higher-than-expected price and uncertain release date of the Vision Pro headset, investors have shown enthusiasm for the potential impact of mixed reality. This has generated significant energy in the sector, with investors seeking opportunities and portfolio companies accelerating funding.
However, the investment in AR and VR remains relatively small compared to the significant amount invested in U.S. AI companies in the first half of the year, which amounted to $31 billion. Nonetheless, the renewed interest in augmented and virtual reality contrasts with the previous perception that excitement in this field was fading.
While some industry giants, like Meta (formerly Facebook), have invested heavily in the metaverse concept without achieving significant success, Apple's confidence in the XR space has positively influenced investor sentiment. XR startups are now drawing attention to the impact of XR beyond consumer use, and some have been successful in securing substantial funding.
Despite the challenges faced by AR and VR products, with Google's smart glasses being a notable example of a product that didn't gain traction, Apple's foray into mixed reality has sparked renewed interest in the potential of the XR technology. This development indicates a growing belief in the future prospects of AR and VR technologies, and their potential applications beyond conventional consumer use.
