The explosion of interest in the metaverse has resulted in investors putting more than £150m of capital into UK virtual reality (VR) companies in 2021. This surge in capital made it a record year of funding for the sector.
Private investment in UK VR firms increased by 72% from 2020, according to analysis by Arden Partners. This was bolstered by an increase in investment in Q4, with the £72m raised during that period smashing the previous record of £46m in the final quarter of 2018.
Total UK VR investment stood at £154m in 2021, versus £90m in 2020.
The video game industry is also set to see significant long-term growth due to growing interest in the metaverse, Arden Partners reveals. The corporate stockbroker states that the video gaming industry is set to record exponential growth over the long term on the back of growing interest in the metaverse.
“We have seen a wave of companies in this space turning to the public equity markets and expect this to continue,” said Arden research director Alex DeGroote.
“Significant technological developments in virtual reality and the metaverse are laying the foundations for the advent of new disruptors challenging the likes of Facebook, Apple and Google that are putting a lot of energy and investment into taking advantage of the potential returns from the virtual reality space.”