What are the latest funding news in the XR market? (January 2026)
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The XR market closed out 2025 with a handful of notable funding announcements, ranging from volumetric video tools to VR for senior wellness.
While overall deal volume remained modest, the diversity of use cases from enterprise defense training to healthcare signals continued investor interest in specialized XR applications.
And if you want to better understand this new industry, you can download our pitch covering the XR market.
Insights
- Non-dilutive funding dominated recent XR deals, with NIH grants and Business Finland awards accounting for over 90% of the total capital announced since mid-October 2025.
- Healthcare and age-tech VR applications continue attracting institutional backing, as Rendever's $4.5M NIH grant shows government confidence in headset-based wellness solutions for older adults.
- Defense and simulation remain a core revenue driver for enterprise XR headset makers, with Varjo committing over 40 million euros to next-generation military training technology.
- Volumetric and spatial video creation is emerging as a new XR infrastructure layer, with Gracia AI raising $1.7M to make 4D Gaussian Splatting accessible to more creators.
- European XR companies secured meaningful public funding this quarter, reflecting ongoing government support for immersive technology R&D in Finland and beyond.
- Early-stage equity rounds in XR remain small compared to AI or fintech, with Gracia AI's $1.7M representing the only disclosed private raise in this period.
In our XR market deck, we have collected signals proving this market is hot right now
Summary table of the latest funding deals in the XR market as of January 2026
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.
We also have a quarter-by-quarter analysis of funding activity in the market here.
| Name | When | Amount in $ | Round Type | Category |
|---|---|---|---|---|
| Gracia AI | December 13, 2025 | $1.7M | Equity funding | XR Developer Tools & Content Pipeline |
| Rendever | November 3, 2025 | ~$4.5M | Non-dilutive grant | XR Content & Services (Health & Age-Tech) |
| Varjo | October 15, 2025 | ~$14.0M | Public R&D funding | XR Hardware & Enterprise Platform |
All the latest funding deals during in the XR market as of January 2026
Gracia AI raised $1.7M in December 2025 for volumetric spatial video tools
When was it?
Gracia AI announced the funding round on December 13, 2025.
Who are they?
Gracia AI builds tools that let creators produce photorealistic volumetric spatial videos using 4D Gaussian Splatting technology for XR experiences.
Geographical focus?
Gracia AI is positioned for global reach, targeting creators and studios worldwide rather than a specific regional market.
Why do we include them in the XR market?
Gracia AI fits squarely in the XR developer tools and content pipeline category, as the company's volumetric video output is specifically designed for consumption in head-worn XR devices.
What is the company stage?
Gracia AI is at the early product-market fit stage, with a defined product now scaling capability and user adoption.
How much did they raise?
Gracia AI raised $1.7M in this funding round.
What round is it?
The round type was not disclosed, though it was reported as an equity funding raise.
Why did they raise?
Gracia AI raised to improve and scale the spatial video creation pipeline so more creators can produce high-fidelity XR-ready volumetric content.
Rendever secured nearly $4.5M in NIH grants in November 2025
When was it?
Rendever announced the NIH grant funding on November 3, 2025.
Who are they?
Rendever provides VR experiences and shared virtual sessions designed to reduce social isolation among older adults in senior living communities and at home.
Geographical focus?
Rendever operates primarily in the United States, with plans to expand access for people aging at home through the Thrive At Home program.
Why do we include them in the XR market?
Rendever's core product is headset-based VR social experiences built specifically for that hardware, placing the company in the XR content and services category with a health and age-tech focus.
What is the company stage?
Rendever is at the growth stage, with a deployed product, ongoing clinical research programs, and established partnerships across senior living facilities.
How much did they raise?
Rendever received approximately $4.5M in total NIH grant funding, including $3.8M for Thrive At Home plus additional funding for a caregiver support network.
What round is it?
This was non-dilutive grant funding from the National Institutes of Health, not a traditional venture capital round.
Why did they raise?
Rendever secured the funding to expand VR support for older adults aging at home and to build a VR-based caregiver support network, with research partners evaluating impact.
In our XR market deck, we help you understand how the market is structured
Varjo received approximately $14M from Business Finland in October 2025
When was it?
Varjo announced the Business Finland funding on October 15, 2025.
Who are they?
Varjo manufactures high-end virtual reality and mixed reality headsets along with software used for serious training applications in defense, aviation, and industrial simulation.
Geographical focus?
Varjo is headquartered in Finland but serves global government and industry partners, with a strong orientation toward NATO and allied nations for defense training.
Why do we include them in the XR market?
Varjo is a head-worn XR device maker with an integrated software stack and services built for those headsets, fitting the XR hardware and enterprise platform category.
What is the company stage?
Varjo is at the growth stage as an established enterprise supplier scaling R&D and deployments rather than searching for initial use cases.
How much did they raise?
Varjo received 12 million euros (approximately $14M) in awarded funding from Business Finland as part of a larger 44 million euro R&D initiative.
What round is it?
This was public non-dilutive R&D funding from Business Finland, not a priced venture capital series.
Why did they raise?
Varjo secured the funding to accelerate development of next-generation XR training systems with improved architecture, ergonomics, security, and deployability for modern defense needs.
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