CHENGDU, Dec. 5 (NBD) -- The “International Summit on AR, VR and MR” was held in Beijing last week. At the summit, participants exchanges opinions centering VR investment. Sun Jing, CEO of VR Seen, complained, “previously, people jumped at VR industry and investment. But now, they are hesitating when asked for investment. ” Many start-ups have experienced such reversal scenarios.  

Li Yao, an expert in investment psychology and system trading, founded a company focusing on VR engine in 2014. This company nailed the angel investment within five minutes, but now it faces difficulties in the Round-B financing. Li said, “we have contacted with several investors. But because of the capital freeze and the overheating or overcooling of VR industry, most investors hold back and take a wait-and-see attitude. ” Li added, if the Round-B financing started one year or so earlier, it would have been completed. When asked about his feelings towards such situation, he said, “I am not frustrated but surprised by the fast industrial replacement.”

With regard to such reversal, Xiong Wei, the founder of Fibonacci VC, believed that this freeze is more accurately called VR capital freeze. Although it partially results from the loss suffered by investors, yet it is more likely posed by problems on the demand side. Investors and the market on the whole hold enough money to invest in the industry. The root cause lies on the demand side rather than the supply side.

Judging from the industrial structure, many VR startups indiscriminately borrow everything they could access and obscure the major problems, which causes inconsistency between what the products can offer and what customers really need.

Li Wenbiao, the managing director of Walden International, further explain that enterprises which base on unstable technology can hardly seize the opportunity to develop.