Magic Leap, the US-based augmented reality (AR) system developer backed by a host of corporates, has raised $350m from unnamed new and existing investors, Business Insider reported yesterday, citing an internal memo.
Founded in 2011, Magic Leap has developed lightweight AR goggles that enable users to view graphics overlaid on their surroundings. Initially touted as a consumer product, the system is increasingly being directed toward enterprise areas such as retail or design.
Although it had raised more than $2.6bn in funding prior to the latest round, the company has found marketing the technology difficult.
Magic Leap notified employees last month that more than 1,000 staff members could be laid off, and although the new funding could stave off the worst of those cuts, chief executive Rony Abovitz confirmed today that it still plans to reduce the size of its workforce.
“While our leadership team, board, and investors still believe in the long-term potential of our [intellectual property], the near-term revenue opportunities are currently concentrated on the enterprise side,” Abovitz said in a statement.
“To better prepare Magic Leap for the future, we have taken a close look at our business and are making targeted changes to how we operate and manage costs. This has made it necessary for us to make the incredibly difficult decision to lay off a number of employees across Magic Leap.”
Mobile network operator NTT Docomo supplied $280m for the company in April 2019, nine months after an investment of undisclosed size by telecommunications firm AT&T that valued it at $6.3bn.
Magic Leap had closed a series D round that included e-commerce group Alibaba, internet technology provider Google and media companies Grupo Globo and Axel Springer at $963m in March 2018, the latter investing through Axel Springer Digital Ventures.
Saudi Arabia’s Public Investment Fund led the round, which also featured investment and financial services group Fidelity, JP Morgan Investment Management, Temasek, EDBI, Janus Henderson Investors and T Rowe Price.
The series D followed a $794m series C round led by Alibaba in 2016 at a $4.5bn valuation that was backed by Qualcomm Ventures, a subsidiary of mobile chipmaker Qualcomm, in addition to Google, Fidelity, film studio Legendary Entertainment, and media and entertainment group Warner Bros.
JP Morgan Investment Management, Morgan Stanley Investment Management, KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, Obvious Ventures, Wellington Management and funds and accounts advised by T. Rowe Price Associates filled out the series C.
Google led Magic Leap’s $542m series B round in 2014, investing with Qualcomm Ventures,Legendary Entertainment, KKR, Vulcan Capital, KPCB, Andreessen Horowitz and Obvious Ventures, after $50m of earlier funding from unnamed investors.
Image courtesy of Magic Leap, Inc.
