A venture capital companies or VC has set aside US$10 million to support virtual reality startups. A number of funds prepared by a San Francisco VC firm is aimed to grab the VR and AR markets that are expected to be successful in the next five years. This investment facilitates the startup companies for maximum VR development, to welcome the newborn technologies.
This long-term plan was announced by Presence Capital in early December. In a short time after the announcement, three companies have become part of the investment. One of them is the Baobab Studios, a startup virtual reality animation company that landed a $ 6 million round led by Comcast Ventures last week.
Presence parties Capital believes that the fund are prepared as a red carpet for an immersive experience technology will not end in vain. Although the similar huge investments by Glass Collective, that had support startups in software and hardware development for Google Glass previously is considered less satisfactory.
“All of us strongly believe virtual reality and augmented reality are going to be the primary computing platforms that will eventually supplant mobile,” said co-founder and managing partner of Capital Presence, Amitt Mahajan.
The market research firm, PitchBook reveals that $4 million has been invested in the VR companies since 2010. Rothenberg Ventures and River VR accelerator is the most active company that made 23 investments, followed by Intel Capital with 10 investments and Google Ventures investment with 6 investments.
Mahajan is an entrepreneur and founder of the company which has been acquired by Google and Zynga. The co-creator of social networking games FarmVille is also partnership with Phil Chen, founder of HTC Vive VR project for the consumer device maker HTC. Together with hundreds of firms are trying their luck in the virtual reality industry, Mahajan believes that the investment is made in the right time.
“We do think it’s an interesting time, and we don’t think it’s too early at all… The promise of augmented reality specifically is a big one.” Mahajan said.
Two other companies that also become part of the Presence Capital investments is Harmonix and Waygo. Harmonix is a virtual-augmented reality company founded by the makers of the video game Rock Band and Waygo is an augmented reality startup company that released visual translation application.