Insights on the Immersive Tech Market by Ziv Reichert

1. THE CURRENT STATE
OF IMMERSIVE TECH
INSIGHTS FROM THE REALITIES CENTRE, JULY 2017
@zivreichert

2. ”Over the next 10 years, the form factor’s just going to keep on getting
smaller and smaller, and eventually we’re going to have what looks like
normal-looking glasses that can do both virtual and augmented reality. As
a matter of fact, when we get to this world, a lot of things that we think
about as physical objects today, like a TV for displaying an image, will
actually just be $1 apps in an app store.”
MARK ZUCKERBERG
CEO, FACEBOOK

3. A QUICK RECAP 🕦
Virtual Reality
Augmented Reality
Mixed Reality
Search trends on CB Insights (2017)
Where it really started 🚀
Where we’re at 👇
Where it started 🎬
It actually started in the
50s w/ Sensorama

4. THE LAST FEW MONTHS 🗓
Sources: VentureBeat (2017), Engadget (2017), Business Insider (2017), The Verge (2017), IDC (2017), Recode (2017), VRS (2017) @zivreichert
Cold Facts ❄ Hot Sectors 🔥 Announcements 📣
VR/AR Jobs up 3x since 2015
>1000 AR engineers at Apple
>400 VR engineers at Facebook
US VR/AR Spending 2017: $4.6bn
Asia VR/AR Spending 2017: $2.6bn
EU VR/AR Spending 2017: $2.5bn
+
iMac Pro VR Ready
AR Head-Mounted Displays
1
Solutions / Services 2
Video + Content
3
VR Head-Mounted Displays 4
Peripherals5
Games 6
Advertising & Marketing7
Distribution Platforms 8
$299 Windows HMD
Google Daydream
VR/AR @ F8
+
External
GPUs
MacOS VR Ready (finally)
(ranked by capital invested LTM)

5. THE VR LANDSCAPE: GETTING CROWDED 🥊
Sources: The Venture Reality Fund (2017) @zivreichert
Full list:
http://bit.ly/2rxUPdk

6. THE AR LANDSCAPE: GETTING READY FOR TAKEOFF 🛩
Sources: The Venture Reality Fund (2017) @zivreichert
Full list:
http://bit.ly/2uoj6Hk

7. INITIAL WAVE OF ADOPTERS: GAMERS 🎮
Sources: Road To VR (2017), Virtual Reality Pop (2017), Citi (2016), VR & Fun (2016), Newzoo (2016) @zivreichert
Global Gaming Market Revenue Forecast ($bn)
Cost of new videogame
franchise = ~$100m; don’t
expect AAA VR titles soon
Current market size: ~$120bn
Of which is mobile: ~$43bn
~70m VR gamers by 2020 =
30% of current installed base
of 230m console gamers
VR Gaming market to =
$6.9bn by 2020; to grow to
$11.6bn by 2025; 68%
>600 VR games/apps on Steam
30% of ‘top 10’ on Steam are VR-ready
eSports + VR = increased legitimacy for the sport
500m $5bn 11bn
hours
10% of
sports
Global fans Market size Streamed viewership
By 2020: will exceed the in terms of viewership
Virtuix:
Making
eSports
physical
DRL raises $21m
Competitive FPV drone racing 🏁
(investors: Sky, WWE, Allianz)
1st VR tournament
$7.5k prizes
VR eSports spectating platform
raises $26m (Greycroft, DCM)

8. SECOND WAVE: EVERYONE ELSE 🌊
Sources: CB Insights (2017) @zivreichert
Military & Defense 🗡
VR/AR being used to train soldiers
in simulated virtual environments
Example: ScopeAR; Raised $2m
Events & Conferences 🎤
Organizers using VR tech to sell
more virtual attendance tickets
Example: Paul McCartney in 360°
Advertising 💡
Brands using VR/AR-powered
campaigns to immerse audiences
Example: SyFy TV AR Ad
Law Enforcement 👮
Police using VR/AR tools to train
officers in simulated scenarios
Example: VirTra; IPO’d
Human Resources 💼
Companies using VR to meet and
assess candidates virtually
Example: Mimesys
Manufacturing 🔩
Manufacturers using AR to train
recent hires in using machinery
Example: Inglobe Technologies
Healthcare 4
Doctors using AR to visualize
patients’ health information
Example: FusionTech; raised $750k
Media 📰
Media companies using the VR
medium to tell immersive stories
Example: NYT VR App
Film & Entertainment 📽
Studios producing VR content to
generate new revenue streams
Example: Starbreeze StarVR
Real Estate 🏡
Architects using AR for digital
modeling of development projects
Example: Augment; Raised ~$5m
Automotive 🚗
Carmakers using VR to digitalize
the dealership experience
Example: Audi VR Dealership
Space Exploration 🛰
Scientists using AR to conduct
research and exploration in space
Example: NASA w/ HoloLens
1 2 3 4
5 6 7 8
9 10 11 12

9. BUT WITH >1.8BN ONLINE SHOPPERS IN ‘17, THE BIG OPPORTUNITIY = RETAIL 🛍
Sources: Statista (2017), Engadget (2017), Crunchbase (2017), Citi (2016), eMarketer (2016), Research & Markets (2015) @zivreichert
$23tr
Global Retail
Market ‘17
$35tr
Global Retail
Market ‘25
$5.2tr
Global Online
Retail Market ‘25
Of which 42% will be E-Commerce
Of which 57% will be M-Commerce
Of which 1% will be AR-Commerce
$50bn
🌍 AR-Commerce
Market ’25
(78% CAGR; ‘20-’25)
Recent
Deals 💵
AR modeling tool for 3D
products for E-Commerce
Scalable, web-based VR
shopper and retail solutions
3D visualization software for
home décor retailers
AR platform aimed at furniture
sellers and interior designers
Raised $4.8m Raised $42.5m Raised $1.6m Acquired by Atheer
In-Store VR catwalk
experience w/ Gear VR
AR Dressing
Room App
New product line
previews via VR
The~500bn cosmetics
market ❤ VR/AR tech
All 4 brands already using AR
applications to let customers
virtually try on make-up products

10. APPLE TO MAKE AR MAINSTREAM WITH iOS11 📱
Sources: Statista (2017), Fortune (2017), Apple (2017), 9to5mac (2017)
>700m active iPhones worldwide (March, 2017)
86% currently running iOS10 <1 year of release; ~600m 😱
Potential for ~500m AR-ready iPhones by June 2018*
* Not taking into account new iPhone/iPad sales and iPads eligible for iOS11 updates (note: there’s millions)
+
Beginning of
AR Commerce?=
IKEA = launch partner for ARKit = win
“We’ve talked to Ikea, and they have 3D images of their
furniture line. You’re talking about changing the whole
experience of how you shop for, in this case, furniture and
other objects that you can place around the home”
-Apple Representative
“This will be the first augmented reality app that allows you to
make reliable buying decision […] When we launch new
products, they will come first in the AR app”
- Michael Valdsgaard, Digital Transformation, IKEA
PS: IKEA sales in 2016 were ~$40bn 🖨
@zivreichert

11. DEVS ARE ALREADY GETTING CREATIVE W/ ARKIT A
Sources: Twitter (2017), SimilarWeb (2017), Apple (2017) @zivreichert
~35k followers, including investors from:
4
Portals ✨
3
SpaceX Landings 👽
2
Dancing Robots 🤖
1Online Community of hand-
picked projects made with ARKit
(launched in June & already >120k monthly web visitors)
Meanwhile: Low adoption rates for Google’s Project
Tango devices = Android lagging behind iOS w/ AR
expect the competition to get heated very quickly 🔫 Measuring Tape 📏

12. BUT FOR NOW, ANDROID DOMINATES IMMERSIVE TECH W/ MOBILE VR 👑
Sources: Fortune (2017), TechCrunch (2017), Wired (2017), Games Industry (2017), TechCrunch (2017), Sensor Tower (2017), Business Insider (2016) @zivreichert
sells ~300m mobile phones per year;
20% are high-end; potential for 60m
Gear VR devices annually 🛒
0
2
4
6
8
10
12
Google Cardboard Samsung Gear VR Sony Playstation VR HTC Vive Oculus Google Daydream
170k units
250k units420k units750k units
4.5m units10m units
~1.42m units sold in LTM of the
major non-Android VR devices 👎
~14.67m units sold in LTM
of Android VR devices 👍
Excluding the low-cost Google Cardboard
headset, Samsung’s Gear VR leads;
projections for 10m in circulation by ‘18
Mobile VR Apps (2016) 📱
265m
Android VR app
downloads
276%
YoY Growth
2015 to 2016
56%
Total share of VR
game apps
~30 VR Android apps with >1m downloads, including:
Cardboard CB Camera Expeditions Fulldrive VR

13. SNAP RAISES $3.4BN IN IPO TO TAKE ON AR 👻
Sources: TechCrunch (2017), TechRadar (2017), USPTO (2017), Crunchbase (2017)
Spectacles V1
~100,000 units sold since
September 2016; $13m in revenue
Snap’s latest AR patent, May ‘17
2012
AR V1
“We believe that the camera screen will be the starting
point for most products on smartphones” – Snap, S-1 Filing
2015
AR V2
2017
AR V3
Spectacles V2?
@zivreichert
Object recognition + Spectacles + AR amounts to ~15% of Snap’s currently publicized patents

14. POKEMON GO, GOES CRAZY WITH FIRST MOBILE AR SUCCESS
PokémonGoBrexit
Bye Europe L
Hello Pikachu ⚡
<100 Days33m 25s 2500% $1bn+
Time Spent Per Day Days To $600m YoY Growth in Net Profit Revenue To Date
Runner-up: Facebook @ ~22m Runner-up: Candy Crush @ >200 days Pokémon Co: $5.6m to $143.3m Currently: $1.5m to $2.5m a day
Google Search Trends: Pokémon Go vs. Brexit
@zivreichertSources: TechCrunch (2017), Google (2017), BrowserMedia (2016), VentureBeat (2016)

15. AND IP LAWYERS ARE BUSY AT WORK N
Sources: Upload VR (2017), TechCrunch (2017), Engadget (2017), Biz Journals (2017), CNBC (2017), FreshPatents (2017), Haptic (2017), CB Insights (2016) @zivreichert
Microsoft leads with 611 VR/AR patent
filings between 2009 and 2015 🗄
à VR/AR Patent Filing History
Recent Patents 📜
AMZN
At-home AR technology
controlled with gestures;
potentially for Amazon’s
expanding furniture business
AAPL
Enhanced facial recognition
using depth information; may
replace the fingerprint sensor
+ be used for AR apps
IBM
Managing ephemeral
locations in a virtual universe;
allows programs to teleport
users in VR environments
SNAP
Acquisition of AR IP portfolio
of startup Drop; together w/
Zenly’s tech = enablement of
geofenced AR features
MSFT
Shazam for food; a wearable
nutrition feedback system
using MR + computer vision
to recommend meals
GOOGL
Working on a MR headset;
will allow users to be in a VR
environment yet still be able
to see their own hands
1 2
3 4
5 6
Currently: ~25 VR/AR patents filed in the Q per week

16. $5.75B RAISED BY VR/AR STARTUPS SINCE 2009 IN >800 DEALS 💪
2013 – 2017 YTD (5/12/17)
VR/AR Investments outstripping M&As
Sources: CB Insights (2017), VentureBeat (2017), Digi-Capital (2017)
LTM
LTM
@zivreichert

17. WITH AVERAGE DEAL SIZE = ~30x MEDIAN DEAL SIZE IN ’17 🤝
MedianAverage
Huge discrepancies
due to ’mega rounds’
$800m
#1
$502m
#2
$400m
#3
$100m
#4
$80m
#5
Notable mentions: Blippar ($54m), Jaunt ($65m), Meta ($50m)
Sources: Pitchbook (2017), CB Insights (2017) @zivreichert

18. SPEAKING OF DISCREPANCIES: MAGIC LEAP 🕴
Sources: Linkedin (2017), Magic Leap (2017), Linkedin (2017), Wired (2017), CB Insights (2016) @zivreichert
$50m $542m $794m
Series A
Feb, 2014
Series B
Oct, 2014
Series C
Feb, 2016
1,158 employees
184 job openings
You know you made it…
💵 💰
“Mixed reality doesn’t take you out of this world. Instead it adds elements to our real world.
And it has great flexibility. You can add as little as you want—a single tiny figure on this
tabletop talking to us—or you can replace the walls of this room with a skyscape so we’re
sitting here watching clouds float by. If you have your Magic Leap glasses on, you can look
up at the Empire State Building and watch it being built in the early 1930s, floor by floor, but
sped up. Maybe while you are walking around the modern streets of Chicago you see
gangsters driving past with tommy guns. It could be a form of education, entertainment, and
tourism. In 10 years I expect that mixed-reality technology like Magic Leap will be used as
much as, if not more than, smartphones.” – Peter Jackson
Improbable & Unity too à simulation engines are 🔥

19. NORTH AMERICA LEADS IN # OF DEALS, WHILE SEED = 2/3 OF TOTAL
2009 – 2017 YTD
Smallest deals = Europe L
Median EU deal: $740k
Still a nascent market 👶
Median seed deal: $400k
Sources: CB Insights (2017) @zivreichert

20. TOP VR/AR INVESTORS ARE BASED IN NORTH AMERICA Q
Meanwhile on AngelList:
897 VR/AR investors 👼
Sources: CB Insights (2017), Recode (2017), AngelList (2017)
1
2
3
4
5
6
7
8
9 *It only takes 9 deals to break into the top 9
@zivreichert

21. BUT CHINA IS NOT STANDING STILL X
Sources: Upload VR (2017), Financial Times (2017), China Channel (2017), Canalys (2016) @zivreichert
Market Cap: ~$350bnMarket Cap: ~$380bn Market Cap: ~$65bn
688m internet users in the country
= Huge audience for VR/AR
VR market will = 55bn CNY by ‘20
Up from 1.5bn CNY in ‘16
40% of VR sales come from China
~2.5m VR HMDs out of 6.3m in ‘17
Building VR shopping experiences for its
400m users w/ the new Buy+ platform;
>30,000 downloads within 1hr of launch +
100s of 3D product renderings already
available; Google Cardboard compatible
Aiming to build the world’s largest Chinese-
language VR platform by leveraging its video
streaming service site IQiyi; service already
compatible w/ VR; working with >300 partners
to bring the VR service to 10m users by ‘18
Investing heavily in VR gaming content; well
positioned to dominate the market by
leveraging its own gaming IP; live streaming
360° concerts via Tencent Video; launching
AR store for WeChat + VR HMD by end of ‘17

22. QUALITY VR CONTENT IS STILL MISSING (🐔 & 🥚)
Steam VR Apps By Ownership
Subnautica
>660k Owners
Keep Talking
>240k Owners
Universe Sandbox
>150k Owners
So Hollywood is coming!
1
2
3
4
G.D.T.
J.F.
S.S.
P.J.
Sources: Ploygon (2017), Upload VR (2017), VR Focus (2016)
As headset adoption grows, good content will become critical
Wingnut
AR Studio
Collab w/
The Virtual
Reality
Company
New IP:
Gnomes &
Goblins VR
Crimson
Peak in VR
@zivreichert

23. FOR NOW: AUDIENCES FlOCK TO FACEBOOK, YOUTUBE & VIMEO 📽
Sources: VR Today Magazine (2017), YouTube (2017), Facebook (2017), Vimeo (2017), Worth of Web (2017), VentureBeat (2016), Adweek (2016), TechCrunch (2016)
19m web visits/day (~700m monthly views)>1bn hours per day (~70% via mobile)1.28bn DAU (~65% via mobile)
574,000 360° videos
uploaded in 2017
Updated analytics w/
heat maps coming
VR Creator Lab
launched to fund
360° content makers
A few of the brands utilizing 360° video:YT: Visit Dubai, >10k likes FB: NY Blizzard, >170k views
18m views20m views
Most
viewed
360° Videos
Supports 360° + VR180 + live streaming 🔴 Supports 360° but no live streaming 👎
Note: Luis Fonsi’s Despacito is at >2.8bn views as of July 2017; still a long way to go for 360° content
Facebook launches
Spatial Workstation
Providing tools to
make 360° sound
more immersive
Vimeo joins the
game in ’17 w/ 360°
Adds 8K support and
introduces ’video
school’ for creators
Supports 360° + live streaming 🔴
@zivreichert

24. Sources: Amazon (2017), Engadet (2017), VR Zone (2017), The Verge (2017), StarVR (2017), The Drum (2016), Six Flags (2016)
STUDIOS ARE INVESTING + ATTRACTIONS ARE OPENING 🎢
@zivreichert
Bandai Namco opens a VR arcade
’Shinjuku’ in Japan w/ Mario Kart ]
SeaWorld & Six Flags launch VR
rollercoaster rides; using Gear VR
Together: 34m visitors per annum
+14 other VR arcade games
>250k web visitors per month
+ + =
For location-based entertainment
Content distribution hardware
IMAX launches first VR arcade
in LA w/ StarVR; first of 6 pilots
210° w/
5K resolution
$7m
VRStudio
$35m
LiveEvents
$65m
VRHardware
”Every major studio is testing the VR waters, with small scale projects
run for popular franchises such Warner Bros ‘Batman vs Superman’,
Fox’s ‘The X-Man’ and ‘How to Train Your Dragon” – The Drum

25. Sources: Amazon (2017), CB Insights (2017), PetaPixel (2017), PR Newswire (2016)
360° CAMS ON THE RISE AS COMPACT DIGITALS GET KILLED BY SMARTPHONES ☠
Ricoh Theta
$349.99
GoPro Odyssey
$15,000
Jaunt
$95,000 💸
Facebook 360
$30,000
Nokia OZO
$60,000
Gear 360
$349.99
Plus >100 additional 360° cameras on Amazon w/ 100s of accessories
Search trends on CB Insights (2017)
360 degree cameras
🌏 360° camera market to grow @ ~35% CAGR
(2016 to 2020) - New growth opportunity for manufacturers
Meanwhile, compact
is dying! Smartphone
data doesn’t even fit
98.4% of consumer
cameras sold in 2016
were built into
smartphones; 0.8%
were compact digital
@zivreichert

26. Sources: PetaPixel (2017) Every Mac (2017), PR Newswire (2016), The Verge (2015)
SPEAKING OF SMARTPHONE CAMS: THEY’VE COME A LONG WAY 🤳
@zivreichert
800 people working on
the iPhone camera
1 3G 3GS 4 4S 5 5S 6 6S
2mp
No Frills
Geo-
Tags
3mp
VGA
Autofocus
5pm
HD Vid
Front Cam
8mp
1080p Vid
5x Zoom
1.2mp front
Vid stable
Detection
Sapphire
Dual LED
1.5 Micron
Slow Mo
HDR
Autofocus
12mp
4K Vid
5mp Front
Let’s thank the 800+ camera engineers at Apple 👏
12mp
f/1.8 or f/2.8
2x Optical Zoom
10x Digital Zoom
4K Video at 30 FPS
1080 Video at 30 FPS or 60 FPS
Front Camera w/ f2.2 and 7mp
iPhone 8 will take things a notch further with VCSEL 📸
WTF is that? A laser system that can calculate the distance light travels
from the source of the laser to the target and back 💤
Why it matters? It will allow the iPhone to offer faster and more accurate
depth measurements for augmented reality purposes 🙌
Tip: learn what ‘SLAM’ is, you’ll hear a lot about it in the coming months f
iPhone 7
Tim Cook on AR:
”I think it is profound.
I am so excited about
it, I just want to yell
out and scream"

27. LOOK AT THE WEB & YOU’LL SEE PEOPLE ARE INTERESTED IN VR/AR 🔎
Sources: Reddit (2017), RedditList (2017), RedditMetrics (2017), Worth of Web (2017), Alexa (2017), Quora (2017), VR Focus (2016) @zivreichert
*Rank by popularity (number of subreddit members)
~1m subreddits as of June 2017
942nd
Rank
867th
Rank
84th
Rank*
>660k
members
>82k
members
>75k
members
~78% YoY Growth
~24% YoY Growth
~2,600% YoY Growth
>70k followers for VR/AR topics on
📈ALEXA YoY: ~250%
~2.6m website visitors every month
$4.5m
Series A, May ’17
vrscout.com
~170k monthly visitors
roadtovr.com
~1.5m monthly visitors
vrfocus.com
~580k monthly visitors
🥉 🥈 🥇

28. AND THE DESIRE TO OWN VR/AR HARDWARE IS INCREASING 📈
Sources: Road To VR (2017), Nielsen (2017) @zivreichert
51% of the Q population now knows
what VR/AR is; up from 28% in 2016
Most popular device 👑 Gear VR
PSVR
Oculus
Google Cardboard
HTC Vive
HoloLens
Razer OSVR
Sample of 2,000 people (50% Male, 50% Female)
Q1: Do you intend to purchase a VR/AR device?
Gear VR PSVR Oculus Google Cardboard HTC Vive
7% 7% 5% 4% 4%
of women of men aged 18-24 aged 25-34
126m female adults & 120m male adults (in the Q) ~121m potential buyers
Q2: Which of the following devices would you buy?
34%
26%
25%
25%
10%
10%
5%

29. CORPORATES ARE HARD AT WORK BUILDING 🔨
Hardware Software
Combined market value: ~$3.4 trillion (& that’s only a handful)
Sources: WSJ (2017), CB Insights (2017), Yahoo Finance (2017) @zivreichert

30. CORPORATES ARE ALSO OUT THERE BUYING 💰
Sources: CB Insights (2017), VentureBeat (2016), TechCrunch (2014, 2015)
Select Recent Exits (LTM±)
$350m
$3bn Undisclosed
Undisclosed
$5.5m
$59m
@zivreichert

31. GOVERNMENTAL INITIATIVES ARE ON THE RISE 🏛
Sources: Engadet (2017), Augment (2017), EdSim Challenge (2017), Google (2017), Gulf News (2016), Haptic (2016)
GDP: $17.95 trillion
Population: 321m
GDP: $1.37 trillion
Population: 50m
GDP: $370 billion
Population: 9m
GDP: $10.87 trillion
Population: 1.37bn
GDP: $2.42 trillion
Population: 66m
NYU to open the first
publically funded VR/AR
hub in the US w/ $6m
from the Mayor’s office;
expects to generate 500
jobs in the next 10 years
Department of Education
launching the EdSim
challenge, a competition
to design next-gen
immersive experiences
for education; total prize
pool of $680k
Ministry of Science will
invest $363m in VR/AR
initiatives over the next 5
years; seeking to
encourage entrepreneurs
to develop the sector
New space to open in
Seoul called the Korean
Virtual Reality / Augmented
Reality Complex (KoVAC);
will provide resources and
support to individuals;
plans for 20 campuses
17 science-focused
schools in the UAE have
chosen to incorporate VR
headsets into the
curriculum to increase
student engagement
The Sharjah Book
Authority (SBA) will begin
publishing children’s
books in virtual reality
format in order to
encourage children to
read more
Ministry of Industry
establishes the Industry of
Virtual Reality Alliance in
partnership with >170
private companies to grow
the ecosystem in China
Shenzhen municipal
government to establish
the China Virtual Reality
institute together with HTC
to boost VR activity in the
region and to promote
trade and entrepreneurship
The national curriculum in
France has been revised to
include augmented reality
as a recommended
technology to be used in
middle school courses
Over 1,000 teachers in
France, across each of the
17 academic regions have
signed up to use
augmented reality
tools/application to
educate their students
@zivreichert

32. GPU INTENSITY CONTINUES TO INCREASE EXPONENTIALLY 💻
Sources: The Motley Fool (2017), Citi (2016), Polygon (2016) @zivreichert
Less than 1% of PCs in use in 2016 were powerful enough to run VR content
GPUPerformanceEvolutionGPUPowerConsumption
~$10bn market cap (July ‘15)
~$100bn market cap (July ‘17)stock price up 10x in the last 2 years
(if you’re long VR then you’re long NVIDIA)
70.5% share
of Desktop
GPU Market
Requires 7x more GPU power than a normal PC game
Reasoning: VR requires significantly higher frame rates & resolutions
VR: 3024x1680 running at 90FPS
Normal: 1920x1080 running at 30 FPS

33. NVL: ADOPTION OF HMDS WILL = SLOWER THAN SMARTPHONES 🐌
Sources: IBISWorld (2017), Statista (2017), Goldman Sachs (2016) @zivreichert
The HMD market will still be pretty
big. In fact, it will be worth ~$110bn
by 2025 w/ >100m unit sales 😱
That’s bigger than:
Units (000’s)
But:
1
2
3
4
5
US Wedding Industry ($72bn)
US Video Game Industry ($46bn)
US Coffee Industry ($42bn)
US Bar Industry ($24bn)
US Theatre Industry ($17bn)
~1.5bn smartphone unit
sales projected for 2017
~170m tablet unit sales in
LTM; saturating market

34. >$100B OPPORTUNITY BY 2021 🗻
Sources: IDC (2017), Inc (2017), Digi-Capital (2017), VentureBeat (2017)
VR/AR Revenue Forecasts ($bn)
>$100bn
Potential size
of VR/AR
market by
2021; ~10x of
today
$13.9bn
Amount to be
spent on
VR/AR in 2017;
130.5% YoY
Growth
79/21
AR will
overtake VR,
accounting for
79% of market
by 2021
5
VR/AR unicorns
birthed to-date
Magic Leap (~$8bn), Oculus ($3bn exit), Unity ($2.6bn), MindMaze ($1bn), Improbable (~$1bn)
Notable mention: Blippar (ex-unicorn)
@zivreichert

35. >$500B OPPORTUNITY IN THE NEXT 10 YEARS 🌋
Sources: Digi-Capital (2017), Citi (2016), MediaPost (2016) @zivreichert
It took ~5 years for 🌏 smartphone penetration to reach 1bn; mobile AR will get there in ~3
Mobile AR Adoption (billions) 💵 💴 A $569bn Market By 2025 💶 💷
and ~$2 trillion by 2035? thinks so!
Hardware ⚙
49% CAGR
Software 💿
61% CAGR
The real growth driver 📈

36. BUT OPPORTUNITIES DO NOT COME WITHOUT ANY CHALLENGES w
Sources: TechCrunch (2017), Qualcomm (2017), Pocket-Lint (2017) @zivreichert
Battery Life 🔋 Mobility yBandwidth 🏎
1 2 3
Price 🏷 Content 📺 Pixel Density 👾
4 5 6
Issue: Long-lasting batteries are critical
for wireless headsets, especially AR/MR
Developments: DisplayLink XR Battery
Issue: VR/AR requires low latency and high
capacity networks; bandwidth = >4K streams
Developments: 5G tests commencing
Issue: Headsets are heavy and wired (470g for
Oculus / Vive); tiring for long usage
Developments: TPCAST, Oculus Connect 4
Issue: High-end PCs required for premium VR
content consumption; AR HMDs pricey
Developments: PSVR, Oculus for $200 in ’18
Issue: Chicken and egg problem w/ content
creators; low adoption = development risk
Developments: Installed base growing
Issue: Current pixel density on VR HMDs
(386ppi) causes severe motion sickness
Developments: Gear VR 2 w/ 1500ppi

37. AND FOR EUROPE THE CHALENGE IS DEDICATED VR/AR INVESTORS 🕶
Sources: TechStars (2017), Atomico (2016) @zivreichert
North America Q = ~$1.28bn LTM Europe L = only ~$380m LTM, but…
5 of the top 10 CS institutions are European (e.g. Oxbridge, UCL, ICL)1
>150 US VCs have invested here in LTM (e.g. Sequoia, KPCB)2
Emergence of new generation early stage VCs (e.g. Cherry, Felix)3
558 active investors in Europe + huge angel network4
~4.7m developers across Europe; >450k with VR/AR skills5
>1,000 deep tech startups founded since 20146
~$2bn
invested
in VR/AR
LTM
PS: Samsung Launching NEXT in Berlin, $150m fund to back European frontier tech startups

38. SO ISN’T IT TIME FOR SOMEONE TO FOCUS
EXCLUSIVELY ON IMMERSIVE TECH IN EUROPE?
- WE THINK SO

39. INTRODUCING:
EUROPE’S FIRST DEDICATED VR/AR ACCELERATOR

40. THE REALITIES CENTRE
INVESTING IN THE EUROPEAN VR/AR COMMUNITY

41. THE SWEET DETAILS 🍭
Our partners:
£25k to £50k 2 cohorts per year Initial sectors Added Value
Deal by deal
Seed / Pre-A
5 startups per cohort
3 month duration
Education & training
Remote collaboration
Corporate partners
Industry advisors

42. “Like PCs in the 70s, the internet in the 80s, and smartphones in the
early 2000s, we are seeing pieces of a future that isn’t quite here. But
the future is coming: markets go up and down, and excitement ebbs
and flows, but computing technology marches steadily forward”
Chris Dixon
Partner, Andreessen Horowitz

43. GET IN TOUCH
✉: ziv.reichert@gmail.com
: @zivreichert