Augmented and virtual reality companies raised more than $3bn of funding in 2017 according to research firm Digi-Capital, which claims that half of that investment happened in Q4 alone.
However, a handful of companies accounted for a large chunk of this money: $500m apiece for Magic Leap and Improbable, as well as $200m each for gaming engine Unity and Pokémon Go developer Niantic.
The report suggests that music AR and VR startups raised “tens of millions” of dollars last year, although in its infographic of ‘leaders’ in the various categories, it only mentions two music startups: MelodyVR and TheWaveVR.
“The AR/VR market (particular mobile AR and smartglasses) is at the earliest stages of what it could become, and seasoned early stage investors know that it will take time to scale,” warns Digi-Capital.
“So despite recent AR/VR investment records, the first half of this year will demonstrate whether or not that trend will continue.”