Digi-Capital’s AR/VR Analytics Platform tracked $4.1 billion AR/VR investment in 2019, the third-highest virtual reality investment and augmented reality investment year on record after 2017 and 2018. However, investment dropped significantly in Q4 2019 compared to the previous quarter in terms of both deal volume (i.e. number of deals) and deal value (i.e. dollars invested).
If that quarterly drop is indicative of a longer term trend, some AR/VR startups might need to focus on revenue generation and managing their burn rates this year, rather than leveraging VC investment to accelerate growth. Tracking the first two quarters of 2020 could be critical to see where virtual and augmented reality market investment is headed next.