All the fundraising deals in the XR market (from Q1 2025 to Q1 2026)
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The XR market saw 20 fundraising deals between Q1 2025 and Q1 2026, totaling over $819 million raised across headsets, software, and content.
Hardware companies captured the lion's share of that capital, while enterprise XR software held its ground with a steady flow of smaller but consistent deals.
Content and creator tools remained the most underfunded segment, raising just $8.3 million across four deals despite being widely seen as a critical layer for XR adoption.
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Insights
- XR hardware companies absorbed $619 million, which is 75% of all XR market funding over the past five quarters, confirming that investors still believe the device layer is the biggest value capture opportunity in the XR ecosystem.
- Sesame's $250 million Series B in Q4 2025 alone accounted for over 30% of the entire period's disclosed capital, showing how a single high-conviction bet can completely reshape a quarter's totals in the XR funding landscape.
- Smart glasses startups (Sesame, XREAL, VITURE, INMO) collectively raised over $500 million, far eclipsing traditional VR headset makers, signaling a clear shift in XR investor sentiment toward lighter, wearable form factors.
- VITURE raised $200 million in total across two separate Series B rounds within six months, making it one of the most aggressively funded XR hardware companies outside of the U.S. market.
- No single investor backed more than one XR deal in this period, which suggests the XR investor base is still fragmented and that no dedicated XR-focused fund has emerged as a dominant player yet.
- Enterprise XR software attracted eight deals averaging around $24 million each, suggesting investors want measurable ROI from XR, like in training, surgical navigation, and industrial workflows, not speculative consumer platforms.
- XR content and creator tools raised just $8.3 million across four deals, meaning the average content round was just $2 million, a stark contrast to the $77 million average for hardware deals over the same period.
- Asian XR hardware companies (Pimax, XREAL, INMO, VITURE) together represent a majority of disclosed hardware capital, pointing to a structural advantage in manufacturing depth and local investor access in the global XR race.
- Q4 2025 was the most concentrated quarter in XR fundraising history in this dataset, with the top deal (Sesame) capturing over 90% of all capital raised that quarter.
- Defense and high-risk training was a recurring XR software theme, with Safe Dynamics, VRAI, Loft Dynamics, and Varjo all raising in this niche, suggesting defense budgets are becoming a meaningful source of XR revenue validation.
- Healthcare XR software attracted three separate deals (Strolll, MediView XR, ORamaVR), pointing to augmented reality in clinical settings as one of the most fundable enterprise XR categories right now.
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) |
|---|---|---|---|---|
| Pimax | Makes enthusiast-grade VR headsets with wide fields of view for gaming and simulation. | $13.6M | Q1 2025 | Road to VR |
| Safe Dynamics | Builds AI-powered VR training for law enforcement, military, and other high-risk professions. | $100.0M | Q1 2025 | Safe Dynamics PR |
| VRAI | Provides VR simulation analytics software for defense and high-risk training environments. | $5.4M | Q1 2025 | Tech.eu |
| Strolll | Delivers AR neurorehabilitation therapy through transparent smart glasses for neurological patients. | $13.2M | Q1 2025 | EU-Startups |
| Rival | Converts 2D video and creator content into immersive 3D and VR-native experiences for headsets. | $4.2M | Q1 2025 | Tech.eu |
| frontline.io | Offers a no-code XR platform for industrial training, maintenance, and remote support workflows. | $10.0M | Q2 2025 | Auganix |
| XREAL | Makes consumer AR glasses and spatial computing devices for everyday use. | $28.6M | Q2 2025 | Taibo |
| DreamPark | Turns real-world venues into mixed-reality theme park experiences using headsets. | $1.1M | Q2 2025 | Business Wire |
| Hololight | Streams XR apps from cloud or on-premise hardware directly to AR/VR headsets for enterprise users. | $10.8M | Q3 2025 | Hololight |
| Varjo | Builds high-end VR and XR headsets for defense simulation and industrial training. | $5.8M | Q3 2025 | Varjo |
| Loft Dynamics | Builds FAA and EASA-qualified VR flight simulators for commercial and helicopter pilot training. | $24.0M | Q3 2025 | Tech.eu |
| INMO | Makes consumer AR smart glasses with built-in AI and a proprietary content ecosystem, focused on China. | $21.0M | Q3 2025 | KrASIA |
| VITURE | Makes XR glasses and builds an ecosystem of software and accessories around portable spatial displays. | $100.0M | Q3 2025 | VITURE |
| Thirdverse | Develops VR games and social VR experiences, with a focus on Japanese intellectual property. | $1.3M | Q3 2025 | The Bridge |
| MediView XR | Builds augmented reality tools for surgical navigation and medical imaging in clinical settings. | $24.0M | Q4 2025 | PR Newswire |
| Sesame | Builds AI-powered smart glasses with a voice-native companion experience for everyday consumers. | $250.0M | Q4 2025 | TechCrunch |
| Gracia AI | Builds 4D Gaussian Splatting infrastructure for volumetric video and spatial XR content production. | $1.7M | Q4 2025 | Auganix |
| XREAL | Makes consumer AR glasses and spatial computing devices, competing globally in the smart glasses market. | $100.0M | Q1 2026 | Road to VR |
| ORamaVR | Develops medical XR software for healthcare training, surgical planning, navigation, and rehabilitation. | $4.5M | Q1 2026 | Auganix |
| VITURE | Makes XR glasses and expands its spatial computing platform with new hardware and software layers. | $100.0M | Q1 2026 | Road to VR |
In our XR market deck, we identify pain points entrepreneurs should prioritize
How has funding activity in the XR market changed over time?
Q4 2025 was the most active quarter in dollar terms, driven almost entirely by Sesame's $250 million Series B, which alone made up over 90% of that quarter's total XR market funding.
Q2 2025 was the quietest quarter, with only three deals and $39.7 million raised, reflecting a slower period between the early-year deal activity and the summer acceleration.
Compared to Q4 2025, Q1 2026 saw a 26% drop in total capital raised, but Q1 2026 was still 50% higher than Q1 2025 one year earlier, which points to an overall upward trend in XR market investment.
If you set aside the single largest deal per quarter, the underlying deal activity in the XR market looks much more stable, typically ranging between $14 million and $65 million per quarter with no dramatic outliers, suggesting a healthy base of mid-size rounds beyond the headline deals.
| Quarter | Number of deals | Total raised | Comment |
|---|---|---|---|
| Q1 2025 | 5 | $136.4M | Solid start driven by Safe Dynamics' $100M facility; remaining four deals averaged just $9.1M each. |
| Q2 2025 | 3 | $39.7M | Slowest quarter across all five periods, with no mega-deal and a small number of XR funding rounds. |
| Q3 2025 | 6 | $162.9M | Most active quarter by deal count; VITURE's $100M Series B anchored the total. |
| Q4 2025 | 3 | $275.7M | Highest total of the period thanks to Sesame's $250M raise; few deals but massive concentration. |
| Q1 2026 | 3 | $204.5M | Strong start to 2026 with XREAL and VITURE each raising $100M, confirming XR hardware momentum. |
| All quarters | 20 | $819.2M | Healthy overall volume with a clear upward trend in deal size from Q1 2025 to Q1 2026. |
In our XR market deck, we identify repeatable patterns you can use if you’re building in this market
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 because Spark Capital and Sequoia backed the Oculus founders' vision for AI-powered smart glasses with a voice-native experience at a moment when smart glasses excitement was at its peak.
- Safe Dynamics raised $100 million in a GEM-backed investment commitment to commercialize its VR training platform for law enforcement and military, with a public listing on the horizon.
- XREAL raised $100 million in January 2026 from supply chain partners to scale its AR glasses business as competition in the smart glasses market intensified.
- VITURE raised $100 million in a Legend Capital-led financing round to push new spatial computing hardware and deepen its retail and partner distribution globally.
- VITURE also raised $100 million earlier in Q3 2025 across two new Series B tranches to accelerate product innovation and expand its XR glasses ecosystem worldwide.
- XREAL raised $28.6 million from Pudong Venture Capital Group in Q2 2025 as part of a strategic investment tied to anchoring XREAL's headquarters in Shanghai's Pudong district.
- Loft Dynamics raised $24 million in a Friedkin Group and Alaska Airlines-backed Series B to expand its VR flight simulator offering to commercial airlines beyond its core helicopter training market.
- MediView XR raised $24 million in a GE HealthCare-led Series A to commercialize its AR surgical navigation platform and expand into hospitals globally.
- INMO raised $21 million in Series B2 financing to fund next-generation AR glasses R&D and build out its offline retail channels in China's rapidly growing AI glasses market.
- Strolll raised $13.2 million in an IW Capital-led Series A to accelerate adoption of its AR smart glasses therapy for patients with neurological disorders across rehab clinics and home care.
And, yes, we do cover most of them in our our beautiful pitch about the XR market.
You may also want to check our ranking of the most funded startups in the XR market as well as our list of the most valued startups.
In our XR market deck, we answer all the common questions from investors and entrepreneurs
Is the XR market shifting toward smaller or bigger deals?
Across all five quarters, the average XR market fundraising round was about $41 million, but that number is heavily pulled up by a handful of very large raises in hardware and AI smart glasses.
The average deal size in the XR market went from $27.3M in Q1 2025 to $13.2M in Q2 2025, then climbed to $27.2M in Q3 2025, jumped to $91.9M in Q4 2025, and came in at $68.2M in Q1 2026; the spikes in Q4 2025 and Q1 2026 are almost entirely driven by one or two mega-deals each quarter rather than a broad rise in round sizes across the XR market.
If you strip out the largest deal per quarter, the remaining XR market rounds average closer to $8 to $12 million, suggesting the underlying deal activity is made up of mid-size seed and Series A rounds with no real trend toward larger checks outside of the top tier.
| Quarter | Number of deals | Average deal size | Deals below $2M | Deals above $50M |
|---|---|---|---|---|
| Q1 2025 | 5 | $27.3M | 0 | 1 |
| Q2 2025 | 3 | $13.2M | 1 | 0 |
| Q3 2025 | 6 | $27.2M | 1 | 1 |
| Q4 2025 | 3 | $91.9M | 1 | 1 |
| Q1 2026 | 3 | $68.2M | 0 | 2 |
| All quarters | 20 | $41.0M | 3 | 5 |
In our XR market deck, we help you understand how the market is structured
How concentrated was funding activity in the XR market?
XR market funding has been extremely concentrated throughout this period, with the single largest deal capturing between 49% and 91% of total quarterly capital, meaning most of the money in any given quarter went to just one company. This pattern tells you that XR investing is still driven by conviction bets on a few platform-level companies, not a broad and distributed market.
Even in Q1 2026, the most distributed quarter in the dataset, the top three XR market deals (XREAL, VITURE, and ORamaVR) still accounted for 100% of all capital raised, which shows that even when concentration appears to ease at the top-1 level, the XR funding ecosystem still has very little depth beyond a small number of headline rounds.
| Quarter | Number of deals | % by Top 1 | % by Top 3 | % by Top 10 |
|---|---|---|---|---|
| Q1 2025 | 5 | 73.3% | 93.0% | 100.0% |
| Q2 2025 | 3 | 72.0% | 100.0% | 100.0% |
| Q3 2025 | 6 | 61.4% | 89.0% | 100.0% |
| Q4 2025 | 3 | 90.7% | 100.0% | 100.0% |
| Q1 2026 | 3 | 48.9% | 100.0% | 100.0% |
| All quarters | 20 | 30.5% | 67.4% | 100.0% |
In our XR market deck, we have designed useful charts to give you full market clarity
Which categories in the XR market received the most funding?
XR hardware captured $619 million, or 75% of all XR market funding over the period, because investors are still betting that owning the device layer, especially in smart glasses, is the clearest path to controlling the whole ecosystem. The dominance of Sesame, XREAL, VITURE, and INMO in this category reflects how much capital is chasing the next breakout wearable platform.
Enterprise XR software and training attracted $191.9 million across eight deals, showing that investors are comfortable backing XR when the business case is concrete, whether that is pilot simulation, surgical navigation, or industrial maintenance. The relatively even distribution of funding across eight companies also suggests this category has a healthier mid-market than hardware does.
XR content and creation tools raised only $8.3 million across four deals, making it by far the most underfunded layer of the XR market stack despite being widely considered essential for driving headset adoption. The tiny average round size of just $2.1 million per deal suggests most content bets in the XR space are still too early for larger institutional checks.
| Category name | Number of deals | Total raised | Startups and amount |
|---|---|---|---|
| XR hardware | 8 | $619.0M | Pimax ($13.6M), XREAL ($28.6M + $100M), Varjo ($5.8M), INMO ($21M), VITURE ($100M + $100M), Sesame ($250M) |
| Enterprise XR software & training | 8 | $191.9M | Safe Dynamics ($100M), VRAI ($5.4M), Strolll ($13.2M), frontline.io ($10M), Hololight ($10.8M), Loft Dynamics ($24M), MediView XR ($24M), ORamaVR ($4.5M) |
| XR content & creation | 4 | $8.3M | Rival ($4.2M), DreamPark ($1.1M), Thirdverse ($1.3M), Gracia AI ($1.7M) |
In our XR market deck, we cover the latest tech updates shaping the market
Who are the biggest investors in the XR market?
Spark Capital and Sequoia Capital co-led Sesame's $250 million Series B, making them the investors associated with the single largest XR market deal in the dataset, reflecting their conviction in AI-powered smart glasses as a platform-scale opportunity.
GEM Global Yield LLC SCS backed Safe Dynamics with a $100 million investment commitment, positioning itself as the primary institutional backer behind one of the most ambitious VR training platform builds in the defense sector.
Legend Capital led VITURE's $100 million financing round in Q1 2026, signaling strong Chinese institutional interest in supporting globally competitive XR glasses makers as the hardware race heats up.
Pudong Venture Capital Group exclusively backed XREAL's $28.6 million strategic round in Q2 2025 as part of a broader effort to anchor XREAL's headquarters in Shanghai and support China's AR glasses ecosystem.
GE HealthCare led MediView XR's $24 million Series A, a strategic move that reflects GE HealthCare's interest in embedding augmented reality into surgical and imaging workflows across its hospital customer base.
Friedkin Group led Loft Dynamics' $24 million Series B alongside Alaska Airlines, backing a VR flight simulator company that is now expanding from helicopter training into the much larger commercial aviation training market.
Cipio Partners led Hololight's $10 million round to scale XR pixel streaming infrastructure, betting that enterprise customers will increasingly want to run heavy XR applications from the cloud rather than from the headset itself.
IW Capital led Strolll's $13.2 million Series A to back AR-based neurorehabilitation therapy, an early signal that healthcare-focused XR software can attract dedicated venture capital beyond typical medtech funds.
Beringea led VRAI's $5.4 million Series A to help the defense simulation analytics company open a U.S. office and scale into the world's largest military training market.
Big Pi Ventures led ORamaVR's $4.5 million seed round, backing computational medical XR software at an early stage as the healthcare XR category grows more competitive.
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. "Total funded" does not represent the amount personally invested by an individual investor. Instead, it refers to the aggregate amount raised across all fundraising rounds in which the investor participated.
| Investor | Number of deals | Total funded | Startups |
|---|---|---|---|
| Spark Capital | 1 | $250.0M | Sesame |
| Sequoia Capital | 1 | $250.0M | Sesame |
| GEM Global Yield LLC SCS | 1 | $100.0M | Safe Dynamics |
| Legend Capital | 1 | $100.0M | VITURE (Q1 2026) |
| Pudong Venture Capital Group | 1 | $28.6M | XREAL (Q2 2025) |
| GE HealthCare | 1 | $24.0M | MediView XR |
| Friedkin Group | 1 | $24.0M | Loft Dynamics |
| IW Capital | 1 | $13.2M | Strolll |
| Cipio Partners | 1 | $10.8M | Hololight |
| Big Pi Ventures | 1 | $4.5M | ORamaVR |
In our XR market deck, we track adoption trends and shifts in consumer behavior
Related blog posts
- All the funding deals announced in the XR market
- The startups that have raised the most funding in the XR market
