Ever since Facebook acquired Oculus to the tune of $2 billion, Virtual Reality (VR) and Augmented Reality (AR) have attracted interest. VR is getting a lot of attention because of support from the hardware, ISV, middleware, and investment communities. Since 2010, VR has gotten a total of $800 million in investment, with $300 million this year alone. Some investments are being driven by grandiose expectations, but I think VR is going to take time to saturate the market—if ever. I want to preface this article by saying I am a huge proponent of VR. I believe VR has the potential to fundamentally change how we do many things today. However, I believe that expectations and valuations could hurt VR if they are set too high. This year, I’ve studied various reports from different firms, including investment banks, and realized that many don’t know how much VR is worth or will be worth.
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