However, some sizable financings are still happening in 2024, with AR glasses maker Rokid raising $70 million and mixed-reality glasses maker Xreal securing $60 million. The decline in funding may be due to the fading popularity of buzzwords like "metaverse", with startups now preferring to emphasize their focus on artificial intelligence. The article suggests that if adoption of VR and AR devices accelerates, venture investors may renew their interest in the sector.
Key takeaways:
- The metaverse, virtual reality, and augmented reality startups are experiencing a decrease in funding, with 2024 on track for the lowest funding total in years.
- Apple's Vision Pro headset, marketed as a “spatial computing” device, has not significantly shifted the sentiment, with demand for the $3,500 device reportedly cooling.
- Despite the overall decrease, some sizable financings are still happening, with Rokid, a maker of augmented reality glasses, raising $70 million in a January financing, and Xreal, a maker of mixed-reality glasses, raising $60 million in a January round.
- The buzzwords 'metaverse', 'virtual reality', and 'augmented reality' have fallen out of favor, with startups now preferring to emphasize their artificial intelligence focus.