Mixed-reality startup Varjo raises $31 million in Series B funding

The takeaway

Magic Leap and HoloLens get the headlines, but Varjo is farther along in creating useful Augmented Reality for professional applications including manufacturing and construction. Unlike competitive devices Varjo’s product can be used in fields where extreme precision, visual fidelity, and bandwidth are required.

Consilia Vektor comments

The resolution of VR devices on the market today is a fraction of what the average human eye can see. Resolution is a key issue for the Varjo team, as they work to build a XR device suitable for industrial use. Real-world industrial use cases would be years down the road if they waited for consumer-focused products like Oculus or Vive.

Decision support is a huge bottleneck in industrial processes. Information is not available at high fidelity in real time to support quality decisions. Varjo’s mixed reality is designed to close development cycle gaps caused by incomplete access to complex visual data. As Jan Pfueger of research partner Audi says, “Varjo’s technology is convincing and will help us to close the existing gaps and speed up our development cycles using the advantages of a continuous virtual process.” said Jan Pflueger, Coordination Augmented and Virtual Reality Center Of Competence at Audi.

The details

Varjo Technologies today announced a $31m Series B investment, led by venture capital firm Atomico, to bring to market the world’s first human-eye resolution VR / XR (virtual reality and mixed reality) product.

Varjo is aimed at industrial and commercial use; most Augmented Reality (AR), VR, and XR projects are looking to the consumer market. A key focus of Varjo R&D is using mixed reality for complex and design-driven industrial applications including simulation and training, architecture, automotive, aerospace, manufacturing, engineering and construction, and industrial design. Research partners include Airbus, Audi, Lilium, Saab, Sellen, Volkswagen, and Volvo Cars.

Identical design visualizations as displayed in the Varjo headset, top, and the Oculus Rift, bottom. (Source: Varjo Technologies)

Other investors in this funding round include new strategic investor Next47 joining Series A investors EQT Ventures and Lifeline Ventures. Next47 is backed by industrial giant Siemens.

Series B is second-round funding. Generally it is achieved after a start-up proves itself and its technology and has achieved specific milestones. Series B investments generally rate the company at a higher valuation.

Varjo (Finnish for “shadow”) is working on an industrial-grade VR / XR headset that allows professionals human eye-resolution virtual or mixed reality when designing or building new products or infrastructure. The headset will integrate with other 3D engines and software tools.