INSUBCONTINENT EXCLUSIVE:
Despite early-stage virtual reality market and augmented reality market valuations softening in a transitional period, total global AR/VR
startup valuations are now at $45 billion globally — include non-pure play AR/VR startups discussed below, and that amount exceeds $67
More than $8 billion has been returned to investors through M-A already, with the remaining augmented and virtual reality startups carrying
more than $36 billion valuations on paper
Only time will tell how much of this value gets realized for investors.
(Note: this analysis is of AR/VR startup valuations only, excluding
internal investment by large corporates like Facebook
Again, this analysis is of valuation, not revenue.)
Selected AR/VR companies that have raised funding or generated significant revenue,
plus selected corporates as of September 2019.
There is significant value concentration, with just 18 AR/VR pure plays accounting for half
of the $45 billion global figure
Some of the large valuations are for Magic Leap (well over $6 billion), Niantic (nearly $4 billion), Oculus ($3 billion from exit to
Facebook), Beijing Moviebook Technology ($1 billion+) and Lightricks ($1 billion)
While there are unicorns, the market hasn''t seen an AR/VR decacorn yet.
Across all industries — not just AR/VR — around 60% of
VC-backed startups fail, not 90% as often quoted
That doesn''t mean this many startups crash and burn, but that 60% of startups deliver less than 1x return on investment (ROI) to investors
investors get less back than they put in)
To better understand what happening in AR/VR, let analyze the thousands of startup valuations in Digi-Capital AR/VR Analytics Platform to
see where the smart money is by sector, stage and country.
