All the fundraising deals in the XR market (from Q2 2025 to Q2 2026)
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In our XR market deck, you will find everything you need to understand the market
XR startups announced 22 qualifying fundraising rounds between Q2 2025 and Q2 2026.
These XR market funding deals raised a combined $965.19 million.
AR glasses and wearable interfaces received most of the capital, while enterprise XR software attracted smaller but more regular investments.
And if you want to better understand this new industry, you can download our pitch covering the XR market.
Insights
- AR glasses and wearable interfaces received $849.6 million, equal to 88.0% of all XR market funding across the five-quarter period.
- Five rounds of at least $100 million generated $800 million, or 82.9% of all disclosed XR startup funding.
- XPANCEO and Sesame each raised $250 million, making the two companies responsible for more than half of the total XR market funding.
- The average XR funding round was $43.87 million, but 12 of the 22 deals were smaller than $12 million.
- Q3 2025 was the strongest quarter because XPANCEO and VITURE raised a combined $350 million.
- Q2 2026 had no qualifying disclosed XR funding round, after $217 million was raised during Q1 2026.
- Enterprise XR software attracted five rounds across industrial maintenance, flight training, surgery and medical education.
- Varjo was the only conventional mixed reality headset company to announce a qualifying financing during the period.
- XR content startups raised smaller rounds, showing that investors placed more capital into hardware and practical enterprise applications.
- Pudong Venture Capital Group was the only disclosed investor involved in more than one qualifying XR funding deal.
This market map, featured in our XR market deck, highlights top companies and startups in the XR market
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 in $ | Quarter |
|---|---|---|---|
| frontline.io | Provides XR training, maintenance and remote-support software for industrial machinery. | $10.0M | Q2 2025 |
| XREAL | Designs consumer AR glasses that display digital screens and spatial applications. | $28.6M | Q2 2025 |
| VUZ | Distributes immersive 360-degree and spatial video for sports, entertainment and creators. | $12.0M | Q2 2025 |
| DreamPark | Turns physical venues into downloadable mixed reality theme parks. | $1.1M | Q2 2025 |
| XPANCEO | Develops smart contact lenses with AR displays, sensors and AI features. | $250.0M | Q3 2025 |
| Hololight | Streams complex AR and VR applications to enterprise headsets. | $10.8M | Q3 2025 |
| INMO | Makes standalone consumer AR glasses with integrated AI and applications. | $21.0M | Q3 2025 |
| Aircards | Creates commercial AR, VR and spatial campaigns for brands and agencies. | $3.8M | Q3 2025 |
| Loft Dynamics | Builds regulator-qualified VR simulators for helicopter and airline pilot training. | $24.0M | Q3 2025 |
| Varjo | Makes high-resolution mixed reality headsets for defense, aviation and industry. | $5.8M | Q3 2025 |
| VITURE | Makes consumer XR glasses, accessories and spatial computing software. | $100.0M | Q3 2025 |
| Thirdverse | Develops multiplayer VR games and social entertainment experiences. | $1.34M | Q3 2025 |
| MediView XR | Provides AR surgical navigation and medical imaging tools for clinicians. | $24.0M | Q4 2025 |
| Sesame | Develops conversational AI and lightweight smart glasses for consumers. | $250.0M | Q4 2025 |
| Sensetics | Develops touch-sensing and haptic interfaces for AR and VR systems. | $1.75M | Q4 2025 |
| Gracia AI | Creates realistic volumetric video for VR and AR applications. | $1.7M | Q4 2025 |
| StretchSense | Makes motion-capture gloves for immersive training and simulation. | $2.3M | Q4 2025 |
| XREAL | Designs consumer AR glasses and Android XR devices for global markets. | $100.0M | Q1 2026 |
| Nucleus4D | Creates interactive 3D environments and digital twins for spatial computing. | $1.5M | Q1 2026 |
| Virtuix | Makes omnidirectional treadmills that let VR users walk inside virtual environments. | $11.0M | Q1 2026 |
| ORamaVR | Develops medical XR simulations for training, planning and rehabilitation. | $4.5M | Q1 2026 |
| VITURE | Makes consumer XR glasses and an integrated spatial display ecosystem. | $100.0M | Q1 2026 |
In our XR market deck, we identify pain points entrepreneurs should prioritize
How has funding activity in the XR market changed over time?
Q3 2025 was the most active quarter, mainly because XPANCEO raised $250 million and VITURE raised $100 million.
Q2 2026 was the least active quarter because no qualifying XR market funding deal was publicly disclosed.
XR market funding fell by 100% between Q1 2026 and Q2 2026, and it also fell by 100% compared with Q2 2025.
Without the largest one or two rounds in each quarter, XR funding activity looks much smaller and more stable. Most underlying rounds remained below $25 million.
| Quarter | Number of deals | Total raised ($) | Comment |
|---|---|---|---|
| Q2 2025 | 4 | $51.70M | XREAL supplied more than half of the quarter's XR market funding. |
| Q3 2025 | 8 | $416.74M | XPANCEO and VITURE made Q3 2025 the strongest quarter. |
| Q4 2025 | 5 | $279.75M | Sesame represented almost 90% of the quarter's disclosed XR funding. |
| Q1 2026 | 5 | $217.00M | XREAL and VITURE generated $200 million of the quarter's total. |
| Q2 2026 | 0 | $0 | No qualifying XR market fundraising round was publicly disclosed. |
| Total | 22 | $965.19M | Five large hardware and interface rounds shaped the five-quarter total. |
This chart, featured in our XR market deck, looks at XREAL’s strategy in XR
Which startups in the XR market raised the largest rounds over the last months?
These startups raised the most recently in the XR market:
- XPANCEO raised $250 million to combine several smart contact lens prototypes, complete regulatory work and prepare its first specialist products.
- Sesame raised $250 million to build lightweight smart glasses and improve the conversational AI assistant designed for the device.
- VITURE raised $100 million in Q3 2025 to develop new XR glasses and expand international distribution.
- XREAL raised $100 million to increase production and accelerate the launch of Android XR devices.
- VITURE raised another $100 million in Q1 2026 to deepen retail partnerships and develop new spatial computing products.
- XREAL raised $28.6 million to establish a Shanghai headquarters and support AR device development.
- Loft Dynamics raised $24 million to expand its VR training systems from helicopters into commercial airline training.
- MediView XR raised $24 million to commercialize its AR surgical navigation platform and reach more hospitals.
- INMO raised $21 million to develop new AR glasses, improve AI features and expand physical retail distribution.
- VUZ raised $12 million to expand its immersive media platform and improve AI-supported spatial video streaming.
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.
This chart, featured in our XR market deck, illustrates yearly funding for XR startups
Is the XR market shifting toward smaller or bigger deals?
The average XR market funding round was $43.87 million across the five-quarter period.
The quarterly average rose from $12.93 million in Q2 2025 to $52.09 million in Q3 2025 and $55.95 million in Q4 2025, before falling to $43.40 million in Q1 2026. A few very large AR glasses and wearable interface rounds caused these changes.
Without the largest XR funding rounds, the market would show a steady flow of seed and growth deals that usually remained below $25 million.
| Quarter | Number of deals | Average deal size | Deals below $2M | Deals above $50M |
|---|---|---|---|---|
| Q2 2025 | 4 | $12.93M | 1 | 0 |
| Q3 2025 | 8 | $52.09M | 1 | 2 |
| Q4 2025 | 5 | $55.95M | 2 | 1 |
| Q1 2026 | 5 | $43.40M | 1 | 2 |
| Q2 2026 | 0 | N/A | 0 | 0 |
| Total | 22 | $43.87M | 5 | 5 |
This chart, featured in our XR market deck, compares the main business model options for XR headset companies
How concentrated was funding activity in the XR market?
XR market funding was highly concentrated, as the three largest rounds generated 62.2% of all capital and the ten largest generated 94.1%. This means the remaining 12 rounds shared only 5.9% of the total.
The concentration was even stronger within individual quarters. Sesame represented 89.4% of Q4 2025 funding, while XPANCEO represented 60.0% of Q3 2025 funding.
| Quarter | Number of deals | Top 1 | Top 3 | Top 10 |
|---|---|---|---|---|
| Q2 2025 | 4 | 55.3% | 97.9% | 100.0% |
| Q3 2025 | 8 | 60.0% | 89.7% | 100.0% |
| Q4 2025 | 5 | 89.4% | 98.8% | 100.0% |
| Q1 2026 | 5 | 46.1% | 97.2% | 100.0% |
| Q2 2026 | 0 | N/A | N/A | N/A |
| Total | 22 | 25.9% | 62.2% | 94.1% |
This chart, featured in our XR market deck, breaks down revenue by customer segment in the XR market
Which categories in the XR market received the most funding?
AR glasses and wearable interfaces received $849.6 million, or 88.0% of all XR market funding. Investors placed large bets on devices that could become lighter and easier to use every day.
Enterprise XR software and training received $73.3 million across five deals. Industrial training and healthcare applications attracted funding because customers can measure time savings, safety improvements and training results.
XR support services and hardware received $18.85 million across four deals. These companies raised smaller rounds because the products support the wider XR ecosystem instead of selling the main headset or interface.
| Category name | Number of deals | Total raised ($) | Startups and amount |
|---|---|---|---|
| AR glasses and wearable interfaces | 7 | $849.60M | XREAL: $28.6M and $100.0M; XPANCEO: $250.0M; INMO: $21.0M; VITURE: $100.0M and $100.0M; Sesame: $250.0M |
| Enterprise XR software and training | 5 | $73.30M | frontline.io: $10.0M; Hololight: $10.8M; Loft Dynamics: $24.0M; MediView XR: $24.0M; ORamaVR: $4.5M |
| XR support services and hardware | 4 | $18.85M | Aircards: $3.8M; Sensetics: $1.75M; StretchSense: $2.3M; Virtuix: $11.0M |
This chart, featured in our XR market deck, shows how VR headset technology has evolved over time
Who are the biggest investors in the XR market?
Pudong Venture Capital Group was the most active disclosed XR market investor. Pudong Venture Capital Group participated in two XREAL rounds that raised a combined $128.6 million.
No other publicly named investor participated in more than one qualifying XR market funding round during the period.
Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented. “Total funded” does not represent the amount personally invested by an individual investor. Instead, it refers to the aggregate amount raised across all fundraising rounds in which the investor participated.
| Investor | Number of deals | Total funded ($) | Startups |
|---|---|---|---|
| Pudong Venture Capital Group | 2 | $128.60M | XREAL |
This chart, featured in our XR market deck, shows how immersive training use cases have driven growth in the XR market over time
Related blog posts
- All the funding deals announced in the XR market
- The startups that have raised the most funding in the XR market
