Augmented reality pioneer WaveOptics raises £20m for global expansion drive
UK technology startup WaveOptics has raised £20m in a new funding round, as the maker of specialist components for augmented reality (AR) glasses pushes to expand its business worldwide.
Founded in 2014, WaveOptics has developed a method for printing nano-structures directly onto optical glass, allowing for the production of augmented reality glasses at lower cost and on a larger scale than was previously possible.
The technology is used in the lenses of AR glasses and allows high resolution computer generated images to be overlaid on the real world. The components are currently used in AR headsets sold by companies such as Microsoft and Magic Leap.
WaveOptics said the new funds will enable the company to expand its operations in Asia and the US. David Hayes, chief executive of WaveOptics, said the new funds will "give us everything we need to expand globally".
He added: "It means we will see millions of units a year of our specialist components being manufactured, which will allow our customers to build up their product portfolios.”
The funding round for the Abingdon-based company was led by Octopus Ventures, a London-based venture capital firm that is one of WaveOptics’s largest shareholders.
Mr Hayes added that his company’s cheaper lens design is special because it allows AR products to become affordable for a greater consumer market. He said AR devices could be sold for under $600 (£469) by the end of 2019. They currently sell for over $1,000 (£780).
The business is also investing in its overseas operations, having recently opened offices in Los Angeles and Taipei. It plans to open a new office in Beijing next year.
The investment represents the largest AR hardware fundraising of its kind in Europe in 2018. WaveOptics is in advanced discussions with potential new shareholders and strategic partners regarding participation in a second stage.
The latest investment was supported by other existing shareholders in the company including IP Group, Robert Bosch Venture Capital, Gobi Partners and Optimas Capital Partners.
The global augmented reality market is expected to reach $70bn by 2023, according to forecasts from Mordor Intelligence. The firm expects to see a compound annual growth rate in augmented reality of 51pc over the next five years.
WaveOptics also recently signed a deal with Goertek, a Chinese producer of consumer electronics.
