Magic Leap, a secretive startup developing an augmented-reality system, announced $793.5 million in funding led by Alibaba Group with participation from Warner Bros. and other investors.
According to Magic Leap, the latest round values the company at $4.5 billion. The funding brings it to nearly $1.4 billion raised, after a $542 million round in 2014 led by Google.
Google and Qualcomm Ventures contributed to the latest round. New investors include Fidelity Management and Research Co., J.P. Morgan Investment Management, Morgan Stanley Investment Management, funds and accounts advised by T. Rowe Price and Wellington Management Co.
“Here at Magic Leap we are creating a new world where digital and physical realities seamlessly blend together to enable amazing new experiences,” Rony Abovitz, founder, president and CEO of Magic Leap, said in announcing the funding. “This investment will accelerate bringing our new Mixed Reality Lightfield experience to everyone.”
Magic Leap hasn’t announced when it expects to commercially launch its system, which is designed to layer virtual objects within a viewer’s field of vision. The startup’s high-profile backers clearly believe Magic Leap is on to something very big.
“We invest in forward-thinking, innovative companies like Magic Leap that are developing leading products and technologies,” Joe Tsai, Alibaba’s exec vice chairman, said in a statement. “We believe Alibaba can both provide support to and learn from such a partner, and we look forward to working with the Magic Leap team.”
Magic Leap’s other existing investors include Legendary Entertainment, KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers, Andreessen Horowitz and Obvious Ventures. Allen & Co. LLC served as financial advisers to Magic Leap for the new funding.
Magic Leap, founded in 2011, is based in Dania Beach, Fla., with locations in Santa Cruz, Calif., Los Angeles, Mountain View, Calif., Seattle, Austin, the U.K., New Zealand and Israel.
Last summer, Rio Caraeff, former CEO of Vevo, joined Magic Leap as chief content officer.
Watch a demo of Magic Leap’s technology: