US-based gaming hardware maker Razer has closed series C investment, granting it a post-money valuation of $1.5 billion.
The involvement of Japan-based Digital Grid, which has also made investments into the smart devices and virtual reality (VR) sector, reflects the potential of the VR segment, estimated to reach a capitalisation of $80 billion by 2020.
Companies like Facebook are already adapting to and preparing for the growth of this sector, much like Razer, which is intent on maintaining its position as a premier gaming hardware developer.
This also synchronises with statements made during an online public interaction facilitated by Tech in Asia with Razer CEO and co-founder Tan Ming-Lian. In response to a question of virtual reality, Tan responded: “I’m excited about VR and that’s why we’re the prime movers behind OSVR (Open Source VR) – osvr.com. I think it’ll take some time to get to mainstream but we’ve got a better opportunity now than ever before.”
Razer is likely to raise larger funding rounds, given investor fear of missing out (FOMO) is driving larger financings in deals, combined with the entry of hedge funds and mutual funds, which has led to larger deal sizes.