Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Virtual reality gets a reality check with a significant fall in investment

Monday, August 05, 2019

Laxman Pai, Opalesque Asia:

For several years, virtual reality (VR) start-ups were highly desired companies to invest in for future returns. More recently, though, the market has taken a volatile turn.

According to Preqin, from 2016 to 2017 the number of venture capital deals completed in VR-related companies dropped by 16%. This trend continued in 2018 with a 27% decrease in the number of investments compared with 2017.

"With H1 2019 recording a further 37% decrease in deals relative to the same period in 2018, it appears that investors are beginning to lose interest as the VR hype wanes," Preqin said in its Insights.

Over the past decade, North America and Asia together account for 79% of the total number of venture capital deals completed in the VR sector.

"Overall, from 2009 to H1 2019, the total value of VR deals in North America is 866% greater than for deals in Asia," said Diego Lanao, an analyst at Preqin.

Looking at 2019 thus far, North America constitutes 84% of the total amount invested in VR-related companies globally, having made the largest venture capital VR financing to date with a $1.25bn Series A/Round 1 investment in Epic Games, Inc. in October 2018.

Amount of capital invested can be misleading

Looking at the two dominant regions investing in the VR market, Asia has begun to creep up on North America in terms of the number of venture capital deals completed per year.

In 2016, Asia recor......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1