In recent years, VR technology has developed rapidly, and the VR industry has shown great potential. As a result, more and more capital has entered the VR industry. However, the cooling of the VR investment market in 2018 also shows that the industry has become more rational. For VR startups, in addition to technology, it is also necessary to explore application scenarios and profit models. The trends and opportunities in the VR investment market need to be rationally analyzed.
VR investment scale declined slightly in 2018
According to statistics, the global VR/AR annual investment scale in 2018 exceeded 2.188 billion U.S. dollars, a decrease of nearly 30% compared with 3 billion U.S. dollars in 2017. Among them, China’s annual investment scale reached 768 million U.S. dollars. The decline shows that the industry has become more rational compared to the hype in 2016-2017. In addition, in the 150 VR/AR financing events that year, the financing projects were mainly concentrated in the seed round and round A, accounting for 71%.
VR investment in China focuses on hardware and industry applications
According to the financing events in 2018, China’s VR investment mainly focuses on hardware and VR+ industry applications. The financing events in the two fields account for 13 respectively, mainly education and home decoration. This shows that in addition to core technology research and development, how to connect VR technology with application scenarios and achieve realization has become the core appeal of investment institutions.
The number of later financing rounds for VR startups increases
Among the 48 domestic VR startups financed in 2018, 23% are in the seed and angel round, 30% are round A, and financing events in rounds B, C and D also account for a significant proportion. Compared with 2017, more enterprises have progressed to the middle and later stages. This shows that the VR industry has cultivated a number of leading enterprises with certain technology and market foundations.
VR investment should focus on long-term value
At present, the consumer VR market is still in its infancy, and technological breakthroughs are needed in many places. Therefore, investing in VR should not only pursue short-term speculative opportunities, but also pay more attention to the long-term value of technological innovation and scenario application. For entrepreneurs, in addition to focusing on technology, it is also necessary to constantly explore various application scenarios, business models and profit paths.
In summary, the VR industry investment market has cooling in 2018, but this shows the rational return of the industry, which is conducive to the long-term healthy development of VR technology and the cultivation of leading enterprises. For investment institutions and startups, we must take a rational view, explore application scenarios, and focus on long-term value.