Virtual Reality is Overflowing With Available Venture Capital
“VR will be the ultimate input-output device. Some people call VR “the last medium” because any subsequent medium can be invented inside of VR, using software alone.” — Chris Dixon, Partner at Andreessen Horowitz
VR will have an effect on every industry in the world and create industries that do not exist today. The upside potential of where VR can go is endless. So then of course a bunch of venture capitalists are investing in VR companies right?
75 or so VC firms have made an investment in virtual reality companies. Only about 15 made more than one VR investment and those were usually two. Remember though, as of the end of 2014 there were 1,200 venture capital firms — a number that has certainly increased for the first half of 2015. So 5% of firms have invested in something that many consider ‘the last medium’?!
This could make sense because VR is early so maybe they are only at the stage for angel investors. From back of the napkin math I still think the number of angels who have written a check into a VR startup is sub 100. For scale, there are almost 18,000 angels with profiles on AngelList!
What did I learn while trying to establish the VR investor landscape? There are not enough people building companies in VR! There are 185 virtual reality companies on AngelList. Compare that to 729 Bitcoin companies or the 2,152 Mobile Game companies. AngelList is obviously not comprehensive but I do believe it paints a nice visual of the startup landscape.
There is crazy hype around the technology and the demos that people are seeing on a daily basis — but that is not enough! We are working with these entrepreneurs and technologists to assist in building this technology into companies. Venture capitalists and Angels alike are telling us they want to invest.
This week my partner, Adam Draper, met with Anjney of KPCB’s new Edge fund, looking to invest ~$200k in Virtual Reality startups as an uncapped convertible note. Today I was reached out to by a Chinese fund looking to invest in virtual reality companies, but are limited by their minimal VR deal flow. The money is ready and because of our relationships with every venture firm out there (Adam being a 4th generation venture capitalist might help a little), our goal is to increase that number of VR startups and plug them into our trusted investor network. The next few years, VC money will be flowing into VR companies and we hope to play a huge role in moving this industry forward.
I do want to give props to those investors who are making large bets on the space (aka more than 1 investments) and we will be sending many good deals their way!
- Google Ventures
- Andreessen Horowitz
- Felicis Ventures
- Formation 8
- Founders Fund
- Highland Capital Partners
- Lux Capital
- Greycroft Partners
- Red Swan Ventures
- Qualcomm Ventures
- Rothenberg Ventures
- SV Angel
- Western Technology Investment
Shameless plug — currently virtual reality accepting applications for Tribe 6 at www.boost.vc/apply :)