Magic Leap, Inc., a distressed AR (Augmented Reality) enterprise, has managed to raise USD 350 million in funding.
Based on information about the round and its form, it seems to be a Series F funding event.
More details on the funding were not very clear. It did not list the names of investors that participated in the event and just categorized them as current and new investors. However, some hints suggest the key investor is likely to be a healthcare company.
The good news
Earlier in April, Magic Leap, Inc., had issued termination notices to about 1,000 employees. However, post the unexpected fundraiser, the company withdrew the notice to terminate, and the employees get to keep their jobs.
Information that the company might have a healthcare investor follows an announcement made in December 2019, by Magic Leap. It is also observed that the company was moving to enterprise AR after tasting failure in the consumer market.
On a broader note, the company pilot product called Magic Leap Creator Edition priced USD 2,295, sold just about 6,000 units against the predicted sales of 100,000 units.
Despite these changes and post being funded with a humongous sum of USD 350 million, the AR company plans to focus on enterprises as per its previous announcement. This is a move that puts the company in direct competition with Microsoft HoloLens.
As per Magic Leap Chief Executive Officer Rony Abovitz, “We are making very good progress in our healthcare, enterprise, and defense deals.” In a memo to employees, Abovtiz mentioned, “As these deals close, we will be able to announce them.”