Magic Leap, a US-based augmented reality (AR) system developer backed by several corporates, secured $500m yesterday at a post-money valuation of about $2bn, from undisclosed participants described by TechCrunch as existing investors.
Founded in 2011, Magic Leap has developed AR headsets and goggles using digital light-field signal technology which enables users to view graphics overlaid on their surroundings without side effects like nausea and headaches. It can be applied to a variety of fields, from gaming and entertainment to smartphones and design.
The company plans to use the financing to further develop its AR technology and proceed with the roll-out of its second-generation product, Magic Leap 2, in 2022. It had previously raised $350m from unnamed investors in May 2020 to take its overall funding to over $2.95bn.
Mobile network operator NTT Docomo provided $280m for the company in April 2019, following an investment from telecommunications firm AT&T in 2018 that valued it at $6.3bn.
The company had previously raised $963m in a 2018 series D round featuring e-commerce group Alibaba, internet technology provider Google and media companies Grupo Globo and Axel Springer.
The 2018 round was led by Saudi Arabia’s Public Investment Fund with backing from investment and financial services group Fidelity, JP Morgan Investment Management, Temasek, EDBI, Janus Henderson Investors and T Rowe Price.
Magic Leap secured $794m in a series C round led by Alibaba in 2016 at a $4.5bn valuation. Qualcomm Ventures, a subsidiary of mobile chipmaker Qualcomm, also took part in that round, alongside Google, Fidelity, film studio Legendary Entertainment and media and entertainment group Warner Bros.
The series C round also included JP Morgan Investment Management, Morgan Stanley Investment Management, KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, Obvious Ventures, Wellington Management and T Rowe Price.
Google had led Magic Leap’s $542m series B round in 2014, participating with Qualcomm Ventures, Legendary Entertainment, KKR, Vulcan Capital, KPCB, Andreessen Horowitz and Obvious Ventures, following $50m already provided by unnamed investors.
Image courtesy of Magic Leap, Inc.