Virtual reality company Magic Leap announces fifth round of venture funding
Magic Leap, the Plantation-based company creating virtual reality devices, announced Monday it is raising its fifth round of funding from venture capitalists.
In a statement, the nine-year-old company, which has already raised more than $2 billion, said it was ”in the midst of a significant financing round, which will become our series E when complete.” Series “E” refers to a fifth-round of funding. The target for the fundraising round was not disclosed; a representative did not immediately respond to comment.
The company added it had already closed “a major portion of this round, some as equity and some as convertible debt that will become equity when the round is complete,” from a syndicate that includes new and old investors. Magic Leap’s investors to date include Google, AT&T, and Saudi Arabia’s sovereign wealth fund.
Magic Leap began sales of its Magic Leap One device this spring. The device is designed as a platform allowing software developers to build their own consumer-friendly products and services. Magic Leap said Monday it is currently working on its second-generation device but did not announce a target release date.
Magic Leap says it now has distributors of Magic Leap One in both the U.S. and Asia. In April, the company announced a partnership with a Japanese conglomerate that included a $280 million investment round.
The company faces competition from Microsoft’s Hololens and Facebook’s Oculus devices in the so-called “augmented reality” field, which allows users to wear a headset that “augments” their visual field with virtual objects. Apple is also said to be working on an augmented reality product.
The news could add grist for industry skeptics who believe Magic Leap has yet to land a knockout punch to become the market leader in the sector.
“It’s not what we’re seeing — it’s more of what we’re not seeing,” said Lyron Bentovim, CEO of The Glimpse Group, a technology incubator for augmented reality companies, in a recent interview. “We’re not seeing any real new business, any real interest in the product. It’s crazy given the amount they’ve spent on building it.”
This story was originally published November 11, 2019 at 5:42 PM.
