What are the fundraising trends 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 $3.28 billion across 117 equity deals between 2022 and 2025, but most of that money went to just a handful of companies.
Two mega-rounds in 2025, XPANCEO and Sesame at $250 million each, captured nearly two-thirds of the year's funding while traditional VR gaming investments almost disappeared.
The industry is clearly pivoting from bulky headsets toward lightweight AR glasses and smart contact lenses.
And if you want to better understand this new industry, you can download our pitch covering the XR market.
Insights
- The top 3 deals captured between 44% and 76% of annual XR funding every single year, showing that VR and AR investment is increasingly a winner-take-most game.
- Enterprise VR training companies raised $221 million in 2022 but only $67 million in 2023, as corporate buyers slowed adoption after the initial post-pandemic rush.
- Chinese AR glasses makers Rokid and XREAL raised over $400 million combined across four years, making China the dominant force in consumer AR hardware investment.
- Medical and surgical AR attracted consistent funding every year, with Augmedics ($82.5M), MediView XR ($39M total), and Pixee Medical ($15M) proving healthcare is the most bankable XR use case.
- VR gaming studios raised just $1.3 million in 2025, down from $56 million in 2022, as investors abandoned content plays in favor of platform and hardware bets.
- The median deal size dropped from $15 million in 2022 to $12 million in 2025, suggesting early-stage XR startups are raising smaller rounds as investor enthusiasm cools.
- Smart contact lens developer XPANCEO raised $290 million total ($40M seed in 2023, $250M Series A in 2025), betting that the future of AR skips glasses entirely.
- Only 15 investors participated in two or more XR deals across all four years, revealing how fragmented and specialized the investor base has become.
- European XR companies focused on enterprise software and medical applications while Chinese and American companies dominated hardware and consumer plays.
First, how do we define the XR market?
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.
This is also the definition we use in our pitch about the XR market.
In our XR market deck, we have designed useful charts to give you full market clarity
How has funding activity in the XR market changed over time?
2024 was the most active year for XR funding with $1.07 billion raised across 42 deals, though two mega-rounds from Infinite Reality ($350M) and Cosm ($250M) captured 56% of that total.
2023 was the slowest year with just $556 million across 24 deals, as the market cooled sharply after the metaverse hype of 2021-2022.
Compared to 2025's $794 million, funding was down 26% from 2024's $1.07 billion, up 43% from 2023's $556 million, and down 7% from 2022's $857 million.
If you exclude the top two deals each year, the underlying trend shows steady decline: from roughly $537 million in 2022 to $291 million in 2023, $418 million in 2024, and $294 million in 2025, suggesting the mid-market for XR startups has shrunk considerably.
If you're interested in this industry, please note that we regularly keep in touch and share funding updates for this market on this page, which we keep continuously updated.
We also make quarterly analyses of the funding activity in the XR market here.
| Year | Number of Deals | Total Raised ($) | Comment |
|---|---|---|---|
| 2022 | 33 | $857M | Enterprise VR training and Chinese AR glasses dominated investment. Rokid's $160M and MindMaze's $105M led a market pivoting from consumer hype to proven business models. |
| 2023 | 24 | $556M | Sharp contraction as metaverse enthusiasm faded. Healthcare AR emerged as the breakout sector with Augmedics raising $82.5M for surgical navigation technology. |
| 2024 | 42 | $1,068M | Deal count rebounded but two mega-rounds skewed results. Infinite Reality ($350M) and Cosm ($250M) together captured more than half of all XR funding. |
| 2025 | 17 | $794M | Fewest deals but large average size as investors bet big on next-gen form factors. XPANCEO and Sesame each raised $250M for smart contact lenses and AI glasses. |
In our XR market deck, we help you understand how the market is structured
Which startups in the XR market raised the largest rounds over the last few years?
These startups raised the most over the last years in the XR market:
- Infinite Reality raised $350 million in 2024 to build an AI-powered immersive platform for digital media and e-commerce, acquiring Landvault to expand its metaverse infrastructure.
- XPANCEO raised $250 million in 2025 to develop the world's first smart contact lens with XR displays and health monitoring, becoming a unicorn at $1.35 billion valuation.
- Sesame raised $250 million in 2025 to build AI-powered smart glasses with conversational agents, founded by Oculus co-founders Brendan Iribe and Nate Mitchell.
- Cosm raised $250 million in 2024 to expand its immersive venue technology for sports and entertainment across Los Angeles, Dallas, and Atlanta.
- Rokid raised $160 million in 2022 to scale its AR glasses for consumer and industrial applications, making it the largest single XR round that year.
- Rokid raised $112 million in 2023 through a strategic partnership with NetDragon to position AR glasses as a mass-market portal for metaverse experiences.
- MindMaze raised $105 million in 2022 for VR neurorehabilitation systems treating stroke and Parkinson's patients across European health systems.
- VITURE raised $100 million in 2025 after capturing 52% of the US XR smartglasses market, expanding its Sony micro-OLED display glasses globally.
- Augmedics raised $82.5 million in 2023 for its FDA-cleared AR surgical navigation system that gives spine surgeons "x-ray vision" during procedures.
- Rokid raised $70 million in 2024 with backing from Hefei Municipal Government to build an industrial metaverse R&D center in China.
And, yes, we do cover most of them in our our beautiful pitch about the XR market.
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?
According to our own data, the average deal size across the XR market from 2022 to 2025 was $28 million, though this figure is heavily skewed by a handful of mega-rounds from AR glasses makers and immersive platform companies.
The yearly averages fluctuated significantly: $26 million in 2022, $23 million in 2023, $25 million in 2024, and $44 million in 2025. The 2025 spike reflects fewer deals overall but larger bets on next-generation form factors like smart contact lenses and AI-powered glasses.
Excluding outliers above $100 million, the average XR deal size has actually remained stable around $15-20 million, suggesting investors are maintaining consistent check sizes for Series A and B rounds while becoming more selective about which companies deserve mega-rounds.
| Year | Number of Deals | Average Deal Size ($) | Deals Below $2M | Deals Above $50M |
|---|---|---|---|---|
| 2022 | 33 | $26.0M | 3 | 5 |
| 2023 | 24 | $23.2M | 1 | 3 |
| 2024 | 42 | $25.4M | 8 | 4 |
| 2025 | 17 | $44.1M | 3 | 3 |
| All Years | 116 | $28.2M | 15 | 15 |
In our XR market deck, we identify repeatable patterns you can use if you’re building in this market
How concentrated was funding activity in the XR market?
XR funding has been extremely concentrated every year, with the top 10 deals capturing between 79% and 97% of all capital. This winner-take-most pattern intensified in 2025 when the top 3 deals (XPANCEO, Sesame, and VITURE) captured 76% of the year's total, leaving little for smaller AR and VR startups.
The concentration trend reflects investor behavior in maturing markets: rather than spreading bets across many early-stage XR companies, venture capitalists are doubling down on category leaders with clear paths to scale in AR glasses, medical applications, and enterprise training.
| Year | Number of Deals | % by Top 1 | % by Top 3 | % by Top 10 |
|---|---|---|---|---|
| 2022 | 33 | 18.7% | 44.4% | 79.2% |
| 2023 | 24 | 20.1% | 47.6% | 82.9% |
| 2024 | 42 | 32.8% | 62.6% | 86.5% |
| 2025 | 17 | 31.5% | 75.5% | 96.8% |
| All Years | 116 | 10.7% | 26.0% | 52.4% |
In our XR market deck, we track adoption trends and shifts in consumer behavior
Which categories in the XR market received the most funding?
AR glasses and smart eyewear hardware captured $923 million (28% of all XR funding), driven by Chinese manufacturers Rokid and XREAL, plus 2025 breakouts like XPANCEO's smart contact lenses and Sesame's AI glasses. Investors clearly believe the future of XR is lightweight, wearable devices rather than bulky headsets.
Medical and healthcare XR raised $311 million (9% of total) across surgical navigation, neurorehabilitation, and digital therapeutics. Augmedics, MindMaze, and MediView XR proved that FDA-cleared AR systems with clinical validation can attract institutional healthcare investors even in down markets.
Enterprise VR training pulled in $288 million (9% of total), led by Transfr, Strivr, and Loft Dynamics. Corporate buyers continue adopting VR for workforce development, surgical simulation, and aviation training where the ROI is measurable and the cost of real-world training is high.
| Category | Number of Deals | Total Raised ($) | Startups and Amount |
|---|---|---|---|
| AR Glasses and Smart Eyewear Hardware | 16 | $923M | Rokid ($342M), XPANCEO ($290M), Sesame ($250M), XREAL ($135M), VITURE ($100M), Sightful ($33M), Pimax ($44M), INMO ($21M), Vuzix ($20M) |
| Medical and Healthcare XR | 14 | $311M | MindMaze ($105M), Augmedics ($82.5M), MediView XR ($39M), FundamentalVR ($20M), Pixee Medical ($15M), Strolll ($13.2M), SURGAR ($12.1M), XRHealth ($16M) |
| Enterprise VR Training and Simulation | 18 | $288M | Transfr ($75M), Osso VR ($66M), Loft Dynamics ($44M), Strivr ($35M), Talespin ($20M), Gemba ($18M), HOLOGATE ($9M) |
In our XR market deck, we review the challenges and risks you might face later
Who are the biggest investors in the XR market?
HTC was the most active XR investor with 4 deals across the period, backing companies including XRHealth, Tripp, ShapesXR, Hexa, and Wevr. HTC's investment strategy reflects its position as a VR headset manufacturer seeking to build out the content and software ecosystem around its Vive platform.
Accenture Ventures participated in 3 deals including Strivr and Talespin, focusing on enterprise VR training platforms that align with Accenture's consulting business in workforce transformation.
Samurai Incubate backed 3 XR companies including Hexa and MyDearest, positioning the Japanese VC as a bridge between Asian and global XR markets.
Mirae Asset invested in 3 deals including Spatial and AmazeVR, betting heavily on VR entertainment and social platforms from a Korean perspective.
IAG Capital Partners led 3 investments in Swave Photonics (multiple rounds) and Miris, focusing on XR infrastructure and display technology rather than consumer applications.
Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented.
| Investor | Number of Deals | Total Funded ($) | Startups |
|---|---|---|---|
| HTC / HTC VIVE | 4 | $35M+ | XRHealth, Tripp, ShapesXR, Hexa, Wevr |
| Samurai Incubate | 3 | $36M+ | Hexa, MyDearest, other |
| IAG Capital Partners | 3 | $61M+ | Swave Photonics (x2), Miris |
| Mirae Asset | 3 | $57M+ | Spatial, AmazeVR (x2) |
| Accenture Ventures | 2 | $55M+ | Strivr, Talespin |
| Boost VC | 3 | $24M+ | Alta, Cognitive3D, ShapesXR |
| GV (Google Ventures) | 3 | $64M+ | Gravity Sketch, StatusPro, Distance Technologies |
| Amazon Alexa Fund | 3 | $93M+ | Mojo Vision, Tripp, IXI |
| Bpifrance | 2 | $27M+ | Pixee Medical, SURGAR |
| Craft Ventures | 2 | $44M+ | Loft Dynamics (x2) |
In our XR market deck, we turn research findings into simple, useful visual summaries
What are the 2026 narratives around fundraising in the XR market?
These are the dominant narratives shaping fundraising in the XR market in 2025 :
- AR glasses are winning: investors poured $500M+ into lightweight eyewear companies while bulky VR headset makers struggled to raise follow-on rounds.
- Smart contact lenses are no longer science fiction: XPANCEO's $250M raise proved that next-generation AR form factors can attract serious institutional capital.
- Enterprise beats consumer: VR training, surgical AR, and industrial applications continue to dominate funding while consumer VR gaming has almost completely dried up.
- AI is the new differentiator: Sesame's $250M for AI-powered smart glasses shows investors want intelligent assistants, not just display devices.
- Chinese AR hardware dominates Asia: Rokid, XREAL, INMO, and Thunderbird together raised over $250M in the last two years, building a parallel ecosystem to Western players.
- Healthcare XR has proven staying power: surgical navigation companies like Augmedics and MediView raised significant rounds even in down markets because FDA clearance creates defensible moats.
- VR gaming investment has collapsed: after raising $56M in 2022, VR game studios attracted just $1.3M in 2025 as investors gave up on standalone content plays.
- Strategic corporate investors are replacing VCs: companies like Quanta, NVIDIA, Samsung, and GE HealthCare are now leading or participating in major XR rounds.
- Aviation VR training is scaling: Loft Dynamics raised $44M total for FAA-certified flight simulators, proving that high-stakes training verticals can support premium XR businesses.
- The middle market is disappearing: XR startups either raise mega-rounds above $50M or struggle to get past seed stage, with few Series A and B deals in between.
In our XR market deck, we will give you useful market maps and grids
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