Discrepancy Between VR Investment Value and Realistic Revenue Could Spell Disaster for the Industry

Virtual reality is an interesting and innovative industry. No one will deny this fact, yet that does not mean VR will be successful in the end. In fact, it appears developers are not making enough money to continually bring new projects to fruition. The Brabant Development Agency released a survey which paints a somewhat worrisome future for VR developers.

Life’s Not Always Great For VR Developers

Although a lot of may assume being a VR developer is glorious right now, they would be sorely mistaken. The spread between developer revenue ambitions and their financing needs is growing quite large as of right now. In fact, about one in two VR developers feels they need more financing in the future. That is quite a troublesome development, considering the sector has attracted billions of US Dollars in investments so far.

To be more specific, raising more capital can only be done if developers set some ambitious goals. Unfortunately, the projected revenue for VR projects is about 8 times lower compared to what VCs would like to see. This creates a financial discrepancy that could many VR startups out of business in the near future. Less compelling financials means investors are less likely to take the round of funding seriously. That scenario needs to be avoided at all costs.

It is of the utmost importance virtual reality developers outline realistic expectations, however bleak they may be at the time. Not being able to come through on an inflated revenue goal will only hurt the VR business as a whole. While the technology is slowly catching on, it is not the virtual gold mine some investors had hoped for. That said, there are plenty of opportunities for startups to stand out from the rest.

For the time being, it is anybody’s guess as to how the virtual reality sector will evolve. It is evident we are reaching a crucial stage already. The potential provided by virtual reality is huge, but it requires funding and development to properly tap into this market. It may take at least another five or six years before people will take virtual reality seriously. Until that time, early adopters will have to make due with what they have and try to raise awareness of what makes VR so great.

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By Mark Arguinbaev

Mark is a 28 year old internet entrepreneur. He is a bitcoin enthusiast and a technology addict. He loves writing and educating readers about the newest tech trends.