HP Innovation Journal Issue 06: Spring 2017 | Page 21

MARKET WATCH
Investing in a Virtual Reality future
HP partners with the Venture Reality Fund
I
f the 80’s gave rise to the computing plat- ecosystem of partners to make AR/VR a main- fast-growing AR/VR ecosystem. Working
form, the 90’s the communication platform, stream reality.
with the Venture Reality Fund, HP gets unique
and the early 00’s the information plat-
To succeed in this fast-paced market, part- insights to AR/VR market dynamics and ear-
form, then we are certainly at the dawn of an nership and investment are a must. That’s why ly access to best-in class AR/VR solutions
immersive and ubiquitously-connected expe- AR and VR startups experienced a surge in that define new innovations and augment
rience platform that will enhance our Blended investments this past year — $1.8B invested existing efforts in this space. With a focus
Reality world. In the same way PCs, mobile in 2016 — the largest year in funding to date. on commercial applications that align to HP
phones and the Internet helped to usher in
In this spirit, HP Tech Ventures has part- target markets — Office, Retail, Healthcare,
those other eras, a new wave of augment- nered with the Venture Reality Fund, already Manufacturing and Education — participat-
ed reality and virtual reality
ing in this fund allows HP to
(AR/VR) solutions are doing
scale and offer new solutions
the same for our immersive
quickly to its customer base.
(in thousands of dollars; • = number of deals)
experience future.
In turn, Venture Reality Fund
51
$1099*
With Goldman Sachs es-
portfolio companies benefit
46
43
timating the market for AR/
from HP’s increasing exper-
40
48
37
VR products and services are
tise in the AR/VR landscape,
expected to grow to more
global footprint, and go-to-
$345
34
than $80 billion by 2025, the
market strategies.
$274
opportunity for established
With a combination of
$209
22
$185
$182
players and new startups is
home-grown
AR/VR solu-
$150 $150
immense. As we discussed
tions and smart investment
in this issues Virtual Reality
opportunities, HP is posi-
comes of age article, HP
tioning itself for long-term
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
sees a huge opportunity for
success in this rapidly grow-
both consumer and com- Source: CB Insights; *Includes $793M MagicLeap Series C
ing market. By fusing our
mercial VR solutions. From
physical and digital worlds,
best-in-class gaming platforms, to mobile established itself as a leading venture fund AR and VR help to deliver on HP’s Blended
VR solutions, head-mounted displays, appli- focused on investing in early-stage start- Reality vision — enabling expression at the
cations, services, and a new breed of content ups that are developing the infrastructure, speed of thought to enhance user experiences
distribution platforms, HP envisions a broad tools, platforms, content, and apps for the and enrich lives. 

AR/VR quarterly investment activity
Issue 6 · Spring 2017 · Innovation Journal 21