Over 18 billion-dollar financings! The most lucrative Metaverse track from the bottom.
It is difficult to say clearly, whether it is the concept of “Metaverse” that first made people pay more attention to the VR/AR industry, or whether the technological breakthroughs in the VR/AR industry reached a new node and let people have more attention to the “Metaverse”. expect.
In front of the public, on one side, the stock prices of several companies such as Meta and Roblox, which shouted the most resounding slogan “Metaverse”, have plummeted. , new products continue.
If someone said that the VR/AR track is hot, it seems to be true.
In the first quarter alone, there have been more than 43 VR/AR companies that have received investment and financing around the world, including 18 investment and financing of over 100 million yuan, with the highest single financing amount reaching 2.2 billion yuan. The total financing amount reached 8.2 billion yuan, an increase of 51% compared with the total financing amount of 4.2 billion yuan in the first quarter of 2021!
However, compared with the hottest quarter of 2021 in the first quarter of 2022, the financing amount and number of financings for VR/AR companies have dropped significantly, and there are obvious signs of turning cold.
▲The investment and financing of VR/AR companies in the first quarter of 2022 (the late stage of the “Metaverse” concept), the first quarter of 2021 (the early stage of the “Metaverse” concept), and the fourth quarter of 2021 (the middle stage of the “Metaverse” concept)
When the concept of “Metaverse” turns cold, who will be the target of capital bets? Among these growth-stage startups, which players are rapidly scaling up?
We sorted out the investment and financing of the VR/AR industry in the first quarter of 2022 and found that more and more VR/AR solution providers are securing large amounts of investment and financing to expand the application scope of their solutions.
▲VR/AR companies that received financing from January to March 2022
43 financings totaling 8.2 billion yuan,
VR makes efforts in medical, security, education and other fields
Judging from the financing information in the first quarter of 2022, we see that VR solution providers have become the field with the largest number of financings, reaching 10, accounting for 23.26%.
VR solution providers mainly provide VR training, AR maintenance and other work for manufacturers. Now, VR training is gradually applied to medical, security, education and other fields.
Medical personnel can use VR equipment to simulate procedures such as surgery and nursing. Security personnel mainly use VR equipment to simulate the response plans when various emergencies occur.
▲Proportion of VR/AR companies that have received financing from January to March 2022
At the same time, VR content entertainment manufacturers and VR smart hardware manufacturers also received 9 and 8 financings respectively, accounting for 18.93% and 18.60% respectively. In addition, game manufacturers also received 7 financings, accounting for 16.28%.
At the 2022 GDC conference, Meta Content Ecosystem Director Chris Pruett revealed that so far, 124 apps have generated revenue of $1 million or more, and 8 apps have generated revenue of more than $20 million.
Since the Quest app store is currently dominated by game applications, we can speculate that many VR game manufacturers make a lot of money from it.
Similarly, investment institutions have also spotted the potential space in this field. In March 2022 alone, 4 investment institutions will launch VR/AR games. Not only that, game makers are also expanding their creative teams through acquisitions.
On March 18, XRGames acquired the old British game studio Fierce Kaiju. Fierce Kaiju has a total of 70 years of experience in the game industry, and founded the VR game department in 2014, which has developed “Virus”, “Virus: Quarantine”, etc. Various VR games.
▲ “Virus: Quarantine” VR game
“A core consumer electronics product mainly looks at the time it takes to occupy users, and games may be a core point of VR/AR equipment.” An industry insider who has been rooted in the consumer electronics industry for many years said: “When the dizziness is solved, After the problem of battery life and battery life, large game developers are happy to develop games for VR/AR devices, and immersive VR games will have a larger market space.”
By sorting out relevant information, we found that China’s VR/AR companies are attracting more and more investors’ attention, and Chinese companies may be becoming the main force in building the “Metaverse” .
We see that the VR/AR industries that receive financing in the first quarter of 2022 are mainly concentrated in China and the United States.
Domestic VR/AR companies have the most financing, reaching 15, and the United States has 11 financings. VR/AR companies in other countries such as the United Kingdom, Japan, and India will also see new financings, but they are all maintained at around 2 or 3.
▲Geographical distribution of VR/AR companies that received financing from January to March 2022
In addition to geographical distribution, we also found through the survey that the companies that received financing during this period were relatively scattered, mostly concentrated in the period from 2014 to 2021, and there were more companies established in 2019, with a total of 6 companies.
From this point of view, investment institutions no longer only focus on some established VR/AR companies that have been established for a long time, but are also optimistic about the development of some start-ups.
▲The time distribution of VR/AR companies that received financing from January to March 2022
Ten acquisitions started the “merger wave”
Leading players in various fields are buying new VR “engines”
From the acquisitions in the first quarter of 2021, we have seen that the VR/AR industry has begun to “break down”.According to incomplete statistics from Zhixi, in the first quarter of 2022, there were ten acquisitions at home and abroad, all of which were abroad.
▲The acquisition of VR/AR companies from January to March 2022 (as of March 30)
From these acquisitions, we can see the figures of many leading players in various fields.
For example, the 3D rendering engine Unity and the design software Adobe “Family Bucket”, which are necessary for VR content developers to install, have developed these two product companies to strengthen their strength in the 3D field, and have acquired Ziva Dynamics, which is the direction of virtual digital human. And Brio XR for 3D platform development.
Not only are the manufacturers that focus on design attributes “buying, buying, buying”, hoping to provide better tools for creators such as games, but game manufacturers are also acquiring a number of companies through the method of “buying where you can’t”.
In addition to the aforementioned XRGames who bought Fierce Kaiju with 70 years of experience, Niantic, which was popular all over the world with “Pokémon GO”, also acquired 8th Wall, a web VR development platform.
The 8th Wall XR tool owned by 8th Wall allows developers to run new applications designed by themselves on Android or iOS, while seamlessly supporting Apple ARKit and Google Tango.
It is worth noting that after acquiring 6 AR-related companies in a row in 2021, social software company Snap will acquire NextMind, a brain-computer interface company, in 2022.
Previously, NextMind had developed a brainwave device that could read signals from the visual cortex of the user’s brain, allowing users to operate computers and VR/AR devices simply by “looking”.
▲The brainwave device developed by NextMind
From these acquisitions, we can see that the leading players in various fields are quietly expanding their power in the VR/AR field, and some start-ups cannot escape the fate of “incorporation” in the end.
Hardware manufacturers rely on investment to lay out the industrial chain
Investment institutions prefer To B companies
Who is optimistic about the VR/AR industry?
After the “Metaverse” gets cold, will the popularity of the VR/AR industry decrease?
Through information sorting, we found that Internet companies generally prefer smart hardware manufacturers . Tencent and Ali invested in a VR/AR hardware manufacturer. Google also acquired Raxium, a developer of VR/AR displays, and ByteDance turned its attention to the time. Blaze the virtual digital human race track.
Some well-known investment institutions such as SoftBank Fund and Sequoia Capital are more optimistic about the virtual digital human track, and have invested in Soul Machines in New Zealand and the next-generation culture in China.
Among them, the next world culture mainly focuses on virtual digital human IP, and launches virtual entertainment images and digital human products with different images, which derives related business models.
Similarly, they also have expectations for some new technologies. For example, Sequoia Fund has also invested in Brain Tiger Technology, a domestic brain-computer interface company, and High-Led Ventures has invested in EventX, a VR event platform manufacturer.
Interestingly, some companies, such as VR/AR hardware manufacturer Nreal, both appear in this form as investors, and are also investees.
On March 30, Nreal received a $60 million (about 380 million yuan) financing led by Alibaba. On the same day, Nreal also participated in the seed round financing of Quintar, an American AR sports solution provider.
The Quintar company is building a home version of the desktop AR sports broadcast system, allowing people to use their smartphones to put the game on the desktop in the form of AR, and watch the entire game from the perspective of God.
In fact, among investors, we can often see that some terminal manufacturers are deploying related industry chain companies. Sony Ventures participated in the C round of financing of Talespin, which mainly focuses on VR training programs; Hon Hai Technology completed about 95.5 million yuan for VR Strategic financing for exhibition platform XRSpace.
Judging from the investment and financing situation in the first quarter of 2022, not only the entry of capital, but also domestic and foreign Internet manufacturers and VR/AR hardware manufacturers participated in the investment and financing of the VR/AR industry.
Investment institutions are more inclined to the popular and mature models of virtual digital and VR content platforms.Domestic Internet companies are more inclined to some optical device, display screen and hardware manufacturers in the upstream of the industry chain, while hardware manufacturers are more inclined to help Among the players in the ecological construction of VR content.
Although the “Metaverse” concept and the number and amount of investment and financing of VR/AR companies have shown the same trend changes, Li Ming, who is engaged in the investment industry, believes that the “Metaverse” concept is hot and the VR/AR industry is hot. Not much related . “Few investment institutions will invest in concepts. Basically, they believe that the technological development of the VR/AR industry may have reached a new node, and some companies are worthy of attention.”
Conclusion: VR/AR Enterprise Investment and Financing Cool Down
Due to the concept of the Metaverse, the VR industry has been on the rise again since last year. Opinions differ this time.Some people see the stock price of leading companies falling and regulation may think that the VR industry will cool down. However, more people believe that the accumulation of technology has ushered in a new upswing period for VR/AR companies.
From the perspective of recent investment and financing, players from all walks of life are continuing to pay attention to this track to find new opportunities, but they are also more cautious, and the number has decreased compared with the second half of last year.
If VR/AR devices can really become a new carrier for the next generation of mobile terminals, more and more people will pay attention to the VR/AR industry. Which companies will seize the opportunity to ride the wind, and which companies will be gradually eliminated, we will wait and see.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/chinese-enterprises-become-the-main-force-of-metaverse-43-financings-of-8-2-billion-yuan-vr-training-is-the-most-popular/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.