Augmented and virtual reality startups are continuing to attract big bucks from investors. Collectively, augmented reality (AR) and virtual reality (VR) companies have closed funding rounds totaling $2 billion over the twelve months ending June 30 2016, according to new data from Digi-Capital.
A lot of that money went to AR and VR headset hardware, thanks to one particular mega deal: Secretive augmented reality startup Magic Leap raised massive $793.5 million round of funding led by Alibaba this February. That investment alone accounts for 40 percent of all money that went into the sector, according to Digi-Capital.
But augmented and virtual reality don’t just attract money from institutional investors. Companies spent $849 million on merger and acquisitions during the same 12 months. Digi-Capital estimates that merger and acquisition activity for augmented and virtual reality companies could reach a billion dollar run rate by the end of this year.