The Venture Reality Fund, also known as the VR Fund, is one of the most prominent venture capital firms working in virtual reality (VR) and other immersive media industries. The company has just released its latest report detailing the state of the VR industry over the second half of 2017.
The new report shows that over 450 companies are engaged with developing infrastructure, tools, platforms and applications for VR and other immersive technologies. The VR Fund shows that overall, the VR industry is seeing continued growth and increased investment.
The report shows that the two areas to see the most substantial growth are the Entertainment and Enterprise areas, with apps and content for Entertainment seeing a 79% growth, and the Enterprise sector seeing 69% growth. Also seeing significant growth are apps and tools for reality capture (56%) and infrastructure for high-end head-mounted displays (47%). The Gaming category grew by 40%, a figure that matches those reported by Oculus, Steam VR and PlayStation VR. VR videogames are indicated by the report to have generated over $1 million (USD) in revenue, a figure that VR Fund says indicates a healthy ecosystem for this early stage of VR industry development.
“Already topping $2.3B this year, global investment in VR and AR is tracking higher than any previous period, and at a more accelerated pace,” said Tipatat Chennavasin, co-founder and general partner at The VR Fund. “The VR industry is healthy and growing steadily and we are seeing increased investor interest from traditional venture funds and new VR and AR focused funds alike.”
The VR Fund report also found that several Hollywood companies such as AMC, Disney, DreamWorks Animation, Netflix, Sony Pictures and Viacom have all been involved with developing new VR experiences, often to tie in to existing properties and franchises, such as Star Wars.
Other trends noted by the report shows that due to increases in technological capability, investment is largely moving away from 360-degree video and towards true immersive VR.