VR VC panel (left to right): Marco DeMiroz, Alice Lloyd George, Phil Sanderson, and moderator Sunny Dhillion.
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VR VCs examine the gap between expectations and reality

  • Posted byby Dean Takahashi
  • Updated
  • 13 min

Waves of virtual reality and augmented reality startups have their funding. Venture capitalists invested $1.7 billion in the AR/VR sector in the 12 months ended March 2016, and $1.2 billion of that was invested in the first quarter of this year alone, according to Digi-Capital.

Is that crazy, given the low revenue figures expected for VR companies in 2016? Or is it appropriate, given that AR/VR could be a combined $120 billion business by 2020? Then there’s the VR market in China to consider, where investment levels are even more frothy.

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Written by

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.