Virtual reality aims to simulate real or imagined environments that users can interact with. While VR hardware from Oculus, HTC Vive, Sony and others is launching, investments so far exceed $300 million but the market potential remains unproven. For developers seeking funding, business models, compelling content, understanding VR and technology, and realistic projections will need to be demonstrated to convince investors amid high costs and limited content in the early market. Experts believe forecasts have overestimated the short term financial potential of VR.

1. Financing & Business Realities
meet Virtual Reality
Jürgen Goeldner
FIDIUS TRUST

2. On the same page…Basics
„Immersive multimedia or computer-simulated reality,
replicates an environment that simulates a physical presence in
places in the real world or an imagined world, allowing the user to
interact in that world. Virtual realities artificially create sensory
experiences, which can include sight, touch, hearing, and smell. “
(Wikipedia)
Devices: Mobile Devices and/or PC/Console
Engines: Unity, Unreal and Crytek

3. On the same page…Consumers

4. On the same page…Hardware
Is VIVE the winner with
• Stand-Up
• 360 movement
• Depth perception (HMD resolution)
• Positional tracking ???

5. On the same page…Hardware 2
Manufacturer Hardware launch
Oculus Q 2 / 2016
Sony (36m VR-ready) H1 / 2016
HTC Vive Q1 / 2016
Microsoft 2016
Samsung + Google 2015

6. On the same page…The Potential

7. On the same page…to be considered

8. Investments by area
Broadcasting
Audio Theme Parks
75 announced
games (IGN list 11
most anticipated)

9. Investors
• Accel
• Andreesen Horowitz
• Colopl Japan
• Dolby Family Ventures
• Formation 8
• Google Ventures
• Intel Capital
• Iris Capital
• Jafco
• J.P. Morgan
• Partech
• Qualcomm
• Rothenberg (incl. River)
• Shanda
• Warner Bros.ca. 300 companies with VR investments

10. Implications
Already many investments done (300)…..what is the effect:
Current VR active investors will focus on portfolio (trouble ?)
Fundraising in next 6-12 months more difficult until market potential is
proven and/or positive trend available
The bar will be raised sharply …. Prepare yourself well !

11. Investment in detail
Preparation for investor approach:
1. Headline (content, technology, hardware, tools, analytics etc.)
2. Target Hardware / Audience
3. Concept
4. Business Model
5. Time table
6. Resources overview
7. Funds needed
 details

12. Investment in detail 2
Concept
• Why in VR ? Are you a „first mover“ with your idea ?
• What is the „awesome VR feature“ convincing the consumer ?
(walking/running/ducking/crawling/body tracking/haptic feedbacks)
 adrenaline rush for real (draw weapon, swing katana, pump shot-gun)
• Can it work across the platforms / devices ?
• Is your immersive (entry point)  ACTIVE VR is the key word
(feeling an experience across your mind and body)
• Patents possible / filed / granted ?
• Social needs bigger than movement/multiplayer (safe-bet answer)

13. Investment in detail 3
Business Models
• Licensing
• Premium price
• Freemium
• F2P
• Subscription
Base projections on conservative (!) hardware forecasts !

14. Investment in detail 4
What else…..
• Is contingency built into funding requirement ( developers  ) ?
• Incentive schemes at your location available ?
• Prove that you and your team have a DEEP understanding in VR
• Show…don‘t just tell (prepare visuals)
• Drive presentation on quality of product, not the promise of the future

15. FINAL Statement
DO NOT BELIEVE all the forecasts !
Industry experts think those are wrong in the short-term and
wrong in the long-term….why ?....overestimated the financial
potential of VR in the short-term - while costs are higher and
content is limited - and underestimated in the long-term.
VR is going to happen….not just a hype !
We are not even at DAY ONE….none are the final solution yet !
This first year will not be boring……………………..THANK YOU