Augmented and Virtual Reality deals accounted for US$686 million of investments in 2015, according to new research.
The Digi-Capital report said there has now been six straight quarters of AR and VR investment growth with US$250 million invested in Q4 2015 alone – a nearly six-fold increase on the rate of investment in mid-2014.
The study claims that 2016 could be “the tipping point” for AR and VR investment, with revenue forecasts for these sectors revised to hit US$120 billion by 2020.
“The cash has been flowing into sectors where investors see both short and long term opportunities, including AR/VR video, games, solutions/services and both AR and VR head mounted displays,” according to the research.
“Lower investment last year in AR/VR advertising/marketing, consumer apps, tech and other sectors was a function of the early stage of the market, but investors are becoming well informed about their potential. Expect to see a broader range of investments in 2016.”
Digi-Capital an investment, analysis and consulting firm that advises clients in the mobile internet, AR/VR, games and digital sectors.