In what is its largest round of funding to date, High Fidelity, Philip Rosedale’s virtual work start-up, received an additional US $11 million in a round lead by Vulcan Capital, the investment company founded and run by Ex-Microsoft co-founder Paul Allen.
This marks at least the second time Vulcan Capital has made an investment in VR technology recently. In October 2014, they were a part of a US $542 million round of investment in Magic Leap, the company developing a new augmented reality system, with an eye potentially on VR applications and virtual worlds as well.
The news of the funding was broken by TechCrunch on Wednesday, February 25th, after papers confirming the funding round were filed with the US Securities and Exchange Commission. Philip Rosedale later confirmed the news to Techcrunch, after the technology journal had placed an enquiry with High Fidelity on the matter.
Rosedale then went on to make a more public announcement on the High Fidelity blog, which included a fun and informative video on matters featuring himself, HiFi co-founder Ryan Karpf and the ever-popular Emily Donald. As this is unlisted on YouTube, I’m respecting High Fidelity’s wishes and linking to it, rather than sharing it via embedding, although I am sneaking in a still from it.
The blog post leads with the statement:
We are happy to announce today that we have raised an additional $11M in funding, in a new round led by Vulcan Capital and with participation from other new and existing investors. This is certainly great news for us, but also great news for the overall VR ecosystem as we continue to see more and more validation from the investing community that VR presents enormous opportunities. With this investment, we will be able to substantially grow our team as we continue to develop and release our open source shared virtual reality software.
The amount raised is more than that had been achieved during both the first and second funding rounds for the company. These occurred in April 2013 (US $2.4 million) and March 2014 (US $2.5 million), and were largely lead by True Ventures and Google Ventures. In the video, Ryan Kampf gives some idea of what this latest round immediately means for High Fidelity:
The next step for us is going to be moving to a more open alpha stage to let you guys come in and create a lot of cool content that you see around you. We’ve had a lot of fun making it, and we look forward to seeing what you guys can create as well.
The video also covers the fact that High Fidelity is still hiring, with Emily Donald pointing people to the company’s job page, and her e-mail address.
Following the March 2014 US $2.5 million round of funding, which came on the heels of Facebook acquiring Oculus VR, I idly speculated whether or not it might have put High Fidelity – until then point regarded as being something of a “stealth start-up” in the eyes of the technology media – more firmly on people’s radar. If it wasn’t the case then, a further US $11 million now should certainly do so. And that’s not just good for High Fidelity.
As Rosedale notes in the quote given earlier in this article, this latest investment in High Fidelity does much to further validate the VR / VW ecosystem as a whole as an investment opportunity. That’s got to be good news for any company working on a new VW platform / environment, and which may want to explore wider options and opportunities for possible funding in the future, even if it’s not necessarily a start-up like High Fidelity.
- High Fidelity Raises $11M To Build Deployable Virtual Worlds – Techcrunch
- “This one goes to eleven” – High Fidelity blog