
Taiwan's HTC launches $1.5b VR investment fund
HTC and the Shenzhen municipal government have agreed to set up a Chinese virtual reality (VR) research institute and a RMB10 billion ($1.5 billion) investment fund for the technology.
The Taiwan-based hardware developer wants to combine its technological expertise with Shenzhen's local industry and academic institutes to speed up development of the VR industry in China. As part of this effort, the Shenzhen VR Investment Fund is expected to become the world's largest single VR-focused vehicle, targeting companies involved in the industry from both inside and outside the country.
"Together, with this research institute's multiple R&D centers and bolstered by the support of industry alliances and the investment fund, we will accelerate the development of the VR industry in Shenzhen and elevate the city's R&D capabilities to an international level," Cher Wang, chairman of HTC, said in a statement. "We are dedicated to exploring the world of VR, and hope to usher in a new era together with Shenzhen."
The partnership will focus on HTC's core technologies of sensors, display, graphics, data visualization and human-machine interaction. Development work in these disciplines is expected to benefit from Shenzhen's complete electronic information industry supply chain, accessible services and supporting facilities. The city will also support R&D and commercialization efforts through its established ecosystem of local VR companies across device manufacturing, content generation, distribution and application.
VR applications will be emphasized across industries including healthcare, military, engineering, design and manufacturing. This work will leverage the participation of companies, universities, research institutes and investment organizations.
HTC launched a $100 million VR accelerator program known as Vive X in April, aiming to foster a development ecosystem for its Vive headset, which uses 360-degree motion tracking, a front-facing camera and two wireless controllers to create an immersive virtual environment for users. In August, Vive X added eight VC funds to its backers and announced the first 33 companies to receive its support.
VCs participating in the accelerator include Lightspeed China Partners, Lightspeed Venture Partners, SoftBank Ventures Korea, SOSventures and Zhenfund. These investors will join HTC's Virtual Reality Venture Capital Alliance (VRVCA), a consortium of intended to support innovation and growth in the global VR industry, which claims to hold more than $14 billion in investible capital.
Asian investors are showing increasing interest in building a supporting ecosystem for the technology as it becomes more affordable. Recent activity includes Baidu's launch of a $200 million fund focused on augmented reality and VR, as well as an $80 million funding round for an Asian expansion by US broadcaster NextVR.
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