VR Startup AltspaceVR is Closing its Doors due to Lack of Funding

When ambitious startups fail, there is plenty of reason to be sad. For AltspaceVR, their demise came as a surprise. A social VR platform should, on paper, attract  a lot of attention. Unfortunately for the company, virtual reality is not a top priority for most consumers right now. Even the concept of its Echo Space dance party wasn’t enough to get people excited. The company had a good run, but they are no longer among us from this moment forward.

It has to be said, AltspaceVR had a very ambitious goal. The company embarked on a rather unique mission to connect people all over the world through virtual reality. Their main attraction is the weekly Echo Space dance party. People dance next to VR avatars. Live DJs spin pumping beats which anyone can tune into. It is by far one of the weirdest concoctions to date, but it also highlights the massive potential virtual reality has to offer.

We are sad to see AltspaceVR Go

Big was everyone’s surprise when the company announced they were shutting down. AltspaceVR let the world know via social media they were unsuccessful in raising enough funding to keep things going. Even after organizing several dozen of these dance parties, investors were not too convinced the company had a future. At the same time, the future of virtual reality is still a big question mark for the time being. As of next week, the company will cease to exist entirely, which is a shame.

It is evident the real power of virtual reality is not in games or apps. It is all about social experiences and bringing together people from different corners of the world. If there is one technology capable of doing so, it is virtual reality. Although we are only just exploring the social side of virtual reality, it is sad to see AltspaceVR go away. The company was a true pioneer and deserves nothing but the utmost respect for their efforts.

Giving people an option to do things they like in virtual reality is quite revolutionary. Finding people to do these things with is even more interesting. Turning strangers into potential friends has been one of the company’s top priorities. Virtual reality is an incredibly valuable technology in this regard, yet it seems the company launched their plans before the world was ready for it. This goes to show VR startups will have tough times ahead. Investors are not too keen on parting with money unless they can expect a return on their investment.

If you liked this article make sure to follow us on twitter @thevrbase and subscribe to our newsletter to stay up to date with the latest VR trends and news.

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.