Total investment in virtual and augmented reality (XR) technology decreased by $1 billion in 2019, according to a new report from the XR marketing firm Greenlight Insights. Whereas total investment reached a record-breaking $2.8 billion in 2017, this figure decreased to $1.8 billion in 2019.
“After seven consecutive years of growth, venture deals and dollars for XR companies declined in 2018 and 2019. There continues to be a long dry spell of IPOS, with only one North American IPO, although their performance so far has been impressive. M&A activity has ticked up in 2019”, said Ramon Conopio, the Greenlight Insights analyst that compiled the report.
The report, which draws upon data from Capital IQ, SEC company websites, Crunchbase, press releases, and the Greenlight Insights funding database, predicts that investment will continue to fall in 2020, projecting a 5-10% decrease in deals compared to the previous year.
Despite the reported decrease in investment, the XR industry is quickly growing. The industry hit $45 billion in startup valuations last year and is expected to grow revenue quickly. One report from Market Search Engine predicts the XR industry will hit $43 billion globally by 2024. Another report estimates the XR addressable market value will be $258.6 billion between 2019-2026 in North America alone.
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