9 Feb 2024 | Mike Boland

AWE Talks: XR Startup Funding in 2024

AWE EU 2023

Key Takeaways
– The startup funding environment has gotten quite difficult over the past year.
   – There's a Covid software-boom hangover and a correction to overvalued markets.
– In XR, that's exacerbated by a separate hangover: a burst metaverse bubble.
   – AR and VR startups' adjacency to the m-word has colored them negatively.
– For all these reasons, investors see a dramatic drop in the m-word in pitches.
   – And they've seen a corresponding rise in the use of AI in pitch decks. 
– In either case, startups can't rely solely on these buzzwords... fundamentals rule.
   – That includes market size, tech differentiation, founding team, and market timing.
   – These factors are more important now than ever, due to more discerning investors.
– Because XR is relatively small still, you need to demonstrate you're a category leader. 
   – Also, don't cite broad market-sizing figures, but rather your addressable market.
– If you want to mention AI, don't do it as an empty buzzword but as a force multiplier.
   – Explain the AI uplift: where the tech enables you to be cheaper, faster, and better. 
   – For example, XR creation platforms can utilize AI to streamline developer workflows. 
– "AI" will soon be like invoking "internet" or "mobile." It will be redundant and pervasive.

For more color from the panel, see the full video below...    

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