Magic Leap, a US-based augmented reality (AR) technology developer backed by corporates including media company Grupo Globo, is seeking $400m in a series D extension, the Financial Times reported on Friday.
The investment would come from the Saudi Arabian government’s Public Investment Fund (PIF) and would value Magic Leap at approximately $6bn. The companies are in talks and the deal is expected to be closed within weeks, people familiar with the matter told FT.
Founded in 2011, Magic Leap has developed an AR headset (pictured) that approximates the way the human eye naturally perceives surroundings in order to overlay virtual objects on the environment.
The company remained in stealth mode for much of its development, before showing the glasses to the public at the end of December 2017. The headset is expected to go on sale sometime this year.
PIF’s commitment would serve as an extension to the $520m in series D funding Magic Leap raised from investors such as Grupo Globo, e-commerce group Alibaba and internet technology provider Google in October 2017.
Temasek led the October tranche, which also featured EDBI, the investment arm of Singaporean government agency Economic Development Board.
JP Morgan Investment Management, Fidelity Management and Research (FMR), Janus Henderson Investors and T. Rowe Price also contriubuted to the first close. A regulatory filing the month before indicated Magic Leap was targeting a $1bn close for the round.
Media group Axel Springer made an investment of undisclosed size in Magic Leap two weeks ago through corporate venture capital subsidiary Axel Springer Digital Ventures.
Magic Leap has secured at least $1.9bn in funding so far, not including the reported series D extension or the unknown amount supplied by Axel Springer.
Google led the company’s $542m series B round in 2014, which included mobile chipmaker Qualcomm’s corporate VC arm, Qualcomm Ventures, film studio Legendary Entertainment, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, KKR, Vulcan Capital and Obvious Ventures.
Magic Leap added $794m in a 2016 series C round led by Alibaba, with contributions from investors including Google, Qualcomm Ventures, Legendary Entertainment and entertainment producer Warner Brothers.
The series C round also featured Fidelity Management and Research, KKR, Vulcan Capital, KPCB, Andreessen Horowitz, Obvious Ventures, JP Morgan, Morgan Stanley, Wellington Management and funds and accounts advised by T. Rowe Price.
– Image courtesy of Magic Leap.