All the fundraising deals in the XR market
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In our XR market deck, you will find everything you need to understand the market
The XR market raised $474.1 million across 10 disclosed deals between Q4 2024 and Q4 2025.
This funding went to head-worn devices like AR glasses and VR headsets, plus the software and training platforms built for them.
A single mega-round from Sesame in Q4 2025 accounted for more than half of all capital raised during this period.
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Insights
- Hardware dominates XR funding with $329.4 million raised (69% of total), showing investors still believe the device layer is the key battleground for AR glasses and VR headsets.
- Enterprise XR training platforms raised $139.4 million across four deals, making B2B simulation and industrial support the most consistent category for VR software investment.
- The average XR deal size was $47.4 million, but this figure is heavily skewed by Sesame's $250 million round for AI-powered smart glasses.
- Q1 2025 was the busiest quarter with four deals totaling $123.2 million, driven by Safe Dynamics' $100 million commitment for VR training technology.
- Content and location-based XR entertainment raised only $5.3 million combined, suggesting investors see the "content gap" as real but not yet ready for big bets.
- Every quarter had at least 80% of its funding concentrated in a single deal, showing XR investment is extremely "lumpy" rather than evenly spread.
- Only one deal fell below $2 million (DreamPark's $1.1 million seed), indicating early-stage XR startups may struggle to attract disclosed funding rounds.
- European XR companies raised $35.2 million across three deals (Varjo, Loft Dynamics, VRAI), showing the region remains active in enterprise VR simulation.
- No investor appeared in more than one deal during this period, suggesting the XR market lacks a dominant repeat backer willing to double down.
In our XR market deck, we will give you useful market maps and grids
Summary table of the funding deals in the XR market (last 5 quarters)
We define the XR market as all head-worn devices that blend digital content with the real or virtual world, plus the software and services built specifically for those devices.
We include virtual reality headsets, mixed reality and augmented reality headsets or glasses, their app stores and content, and associated enterprise software and support services.
We exclude smartphone- or tablet-only AR experiences, flat-screen "metaverse" platforms, core semiconductor and component revenues, and general-purpose PCs or consoles used to run XR content.
You can also read our detailed analysis to understand how funding activity in the XR market has evolved over the last few years.
Also, you should know that we have a dedicated page, updated weekly, with all the latest fundraising deals in the XR market.
| Name | What they do | Amount ($) | Quarter | Source(s) |
|---|---|---|---|---|
| Sesame | Builds AI-powered smart glasses with a built-in assistant | $250,000,000 | Q4 2025 | Road to VR |
| Safe Dynamics | Delivers AI-powered VR training for high-risk jobs like security | $100,000,000 | Q1 2025 | Press Release |
| Xreal | Makes lightweight AR glasses that project screens into your view | $60,000,000 | Q4 2024 | Mixed News |
| Loft Dynamics | Provides VR flight simulation for helicopter pilot training | $24,000,000 | Q3 2025 | Tech.eu |
| Pimax | Builds high-end VR headsets with wide field-of-view displays | $13,600,000 | Q1 2025 | Road to VR |
| frontline.io | Offers a no-code platform for industrial AR/VR training | $10,000,000 | Q2 2025 | Company Blog |
| Varjo | Builds enterprise-grade mixed reality headsets for simulation | $5,800,000 | Q3 2025 | Road to VR |
| VRAI | Provides VR simulation software for defense training | $5,400,000 | Q1 2025 | Tech.eu |
| Rival | Turns 2D video into immersive 3D experiences for headsets | $4,200,000 | Q1 2025 | Tech.eu |
| DreamPark | Transforms real venues into mixed reality theme parks | $1,100,000 | Q2 2025 | Business Wire |
In our XR market deck, we cover the latest tech updates shaping the market
How has funding activity in the XR market changed over time?
Q4 2025 was the biggest quarter by total dollars raised ($250 million), but this was entirely due to Sesame's massive Series B for AI smart glasses.
Q2 2025 was the slowest quarter with just $11.1 million raised across two deals, as no large hardware or enterprise training rounds closed during that period.
Funding in Q4 2025 jumped 739% compared to Q3 2025 ($250 million vs $29.8 million), and increased 317% compared to Q4 2024 ($250 million vs $60 million one year earlier).
If you remove the top deal from each quarter, the XR market looks much quieter. Q1 2025 drops from $123.2 million to $23.2 million, and Q4 2025 disappears entirely since Sesame was the only deal that quarter.
| Quarter | Number of deals | Total raised ($) | Comment |
|---|---|---|---|
| Q4 2024 | 1 | $60,000,000 | Single deal from Xreal for AR glasses commercialization |
| Q1 2025 | 4 | $123,200,000 | Busiest quarter by deal count, led by Safe Dynamics' $100M commitment |
| Q2 2025 | 2 | $11,100,000 | Quietest quarter with mid-sized enterprise and seed deals only |
| Q3 2025 | 2 | $29,800,000 | Loft Dynamics' $24M Series B drove most of the quarter's activity |
| Q4 2025 | 1 | $250,000,000 | Sesame's mega-round made this the largest quarter by far |
| All quarters | 10 | $474,100,000 | Hardware and enterprise VR training captured most capital |
In our XR market deck, we show you long-term trends so you can make better decisions
Which startups in the XR market raised the largest rounds over the last months?
These startups raised the most recently in the XR market:
- Sesame raised $250 million in Series B funding to build AI-first smart glasses, backed by former Oculus leaders betting on the next wave of wearable computing.
- Safe Dynamics raised $100 million through an investment commitment to scale its AI-powered VR training for high-risk jobs and prepare for a public listing.
- Xreal raised $60 million to push R&D and commercialization for its lightweight AR glasses, which project digital screens into your field of view.
- Loft Dynamics raised $24 million in Series B funding to scale its VR helicopter flight training systems for the global aviation market.
- Pimax raised $13.6 million as a Series C extension to expand R&D in the US and Europe for its high-end VR headsets.
- frontline.io raised $10 million in Series A funding to grow its no-code XR platform for industrial training and maintenance worldwide.
- Varjo raised $5.8 million through a convertible loan to accelerate growth in defense and enterprise-grade mixed reality headsets.
- VRAI raised $5.4 million in Series A funding to scale its VR simulation software for defense training across international markets.
- Rival raised $4.2 million in pre-seed funding to build its platform that converts 2D video into immersive 3D content for XR headsets.
- DreamPark raised $1.1 million in seed funding to deploy more mixed reality experiences at real-world venues using Meta Quest headsets.
In our XR market deck, we identify repeatable patterns you can use if you’re building in this market
Is the XR market shifting toward smaller or bigger deals?
The average deal size in the XR market over the past five quarters was $47.4 million, but this number is heavily inflated by two mega-rounds from Sesame and Safe Dynamics.
Breaking it down by quarter, average XR deal sizes ranged from $5.6 million in Q2 2025 to $250 million in Q4 2025. The swings reflect how a single large round can completely reshape quarterly averages in a market with few disclosed deals.
If you exclude the two deals above $50 million (Sesame and Safe Dynamics), the average XR funding round drops to $15.5 million, which better reflects the typical capital needs of VR headset makers and enterprise AR/VR software startups.
| Quarter | Number of deals | Average deal size ($) | Deals below $2M | Deals above $50M |
|---|---|---|---|---|
| Q4 2024 | 1 | $60,000,000 | 0 | 1 |
| Q1 2025 | 4 | $30,800,000 | 0 | 1 |
| Q2 2025 | 2 | $5,550,000 | 1 | 0 |
| Q3 2025 | 2 | $14,900,000 | 0 | 0 |
| Q4 2025 | 1 | $250,000,000 | 0 | 1 |
| All quarters | 10 | $47,410,000 | 1 | 3 |
In our XR market deck, we focus on making things as clear as possible
How concentrated was funding activity in the XR market?
XR market funding is extremely concentrated, with the top deal capturing at least 80% of each quarter's total. In Q4 2024, Q4 2025, and even Q2 2025, a single round accounted for 90% or more of all capital raised.
This pattern shows that VR and AR investment is not spread evenly across many startups. Instead, investors in augmented reality glasses and virtual reality headsets are placing large, focused bets on a handful of companies they believe can win their category.
| Quarter | Number of deals | % by Top 1 | % by Top 3 | % by Top 10 |
|---|---|---|---|---|
| Q4 2024 | 1 | 100.0% | 100.0% | 100.0% |
| Q1 2025 | 4 | 81.2% | 96.6% | 100.0% |
| Q2 2025 | 2 | 90.1% | 100.0% | 100.0% |
| Q3 2025 | 2 | 80.5% | 100.0% | 100.0% |
| Q4 2025 | 1 | 100.0% | 100.0% | 100.0% |
| All quarters | 10 | 52.7% | 86.5% | 100.0% |
In our XR market deck, we track adoption trends and shifts in consumer behavior
Which categories in the XR market received the most funding?
Hardware (headsets and glasses) captured $329.4 million, or 69% of all XR funding. The Sesame smart glasses round alone accounted for most of this, showing investors believe the device layer remains the key control point for augmented and virtual reality.
Enterprise XR software and training raised $139.4 million across four deals. VR simulation for aviation (Loft Dynamics), defense (VRAI, Safe Dynamics), and industrial operations (frontline.io) proved to be the most consistent category because buyers can measure clear ROI from immersive training.
XR content and location-based entertainment raised just $5.3 million combined from Rival and DreamPark. Investors acknowledge the "content gap" for spatial computing, but they are not yet writing large checks for consumer-facing XR experiences.
| Category name | Number of deals | Total raised ($) | Startups and amount |
|---|---|---|---|
| Hardware (headsets and glasses) | 4 | $329,400,000 | Sesame ($250M), Xreal ($60M), Pimax ($13.6M), Varjo ($5.8M) |
| Enterprise XR software and training | 4 | $139,400,000 | Safe Dynamics ($100M), Loft Dynamics ($24M), frontline.io ($10M), VRAI ($5.4M) |
| XR content and services (consumer/LBE) | 2 | $5,300,000 | Rival ($4.2M), DreamPark ($1.1M) |
In our XR market deck, we review the challenges and risks you might face later
Who are the biggest investors in the XR market?
Spark Capital and Sequoia Capital co-led the largest deal of the period, Sesame's $250 million Series B. Their participation signals that top-tier Silicon Valley firms see AI-powered smart glasses as a major opportunity in the XR market.
GEM Global Yield LLC SCS provided the second-largest commitment at $100 million to Safe Dynamics. GEM's investment facility structure helps Safe Dynamics fund commercialization while preparing for a potential public listing.
FII Institute led the $24 million Series B for Loft Dynamics. The institute's backing reflects growing interest in VR flight simulation as a serious category within aviation training.
Beringea led VRAI's $5.4 million Series A for VR defense training. FIT Ventures led frontline.io's $10 million Series A for industrial XR. Speedinvest led Rival's $4.2 million pre-seed for XR content creation. Long Journey Ventures led DreamPark's $1.1 million seed for location-based mixed reality.
Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented.
Note: No investor participated in more than one disclosed deal during this period, so we cannot rank investors by repeat activity. The table below shows lead investors by deal size.
| Investor | Number of deals | Total funded ($) | Startups |
|---|---|---|---|
| Spark Capital | 1 | $250,000,000 | Sesame (co-lead) |
| Sequoia Capital | 1 | $250,000,000 | Sesame (co-lead) |
| GEM Global Yield LLC SCS | 1 | $100,000,000 | Safe Dynamics |
| FII Institute | 1 | $24,000,000 | Loft Dynamics |
| FIT Ventures | 1 | $10,000,000 | frontline.io |
| Beringea | 1 | $5,400,000 | VRAI |
| Speedinvest | 1 | $4,200,000 | Rival |
| Long Journey Ventures | 1 | $1,100,000 | DreamPark |
In our XR market deck, we provide the data and the context to understand it
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