Greycroft enterprise associate Jon Goldman has closed a $15.6 million fund to put money into virtual reality, augmented reality, games, and esports. Greycroft Partners is a restricted associate and investor within the GC VR Gaming Tracker Fund, however Goldman might be investing the fund on his personal as he appears for smaller investments starting from $50,000 to $500,000 per startup. Whereas Goldman lately closed the fund, he has already made 20 investments in since early 2016, Goldman stated in an unique interview with GamesBeat.
Goldman’s portfolio contains Mindshow, LiveLike, SliverTV, Littlstar, UploadVR, and FanAI. The fund has dedicated greater than $four million in investments up to now, however Goldman stated that he expects he’ll have cash to take a position by way of 2019.
“We have a lot of dry powder,” Goldman stated. “That’s because we are not likely to be making follow-on investments, as that is the kind of thing that Greycroft would do if they wanted.”
Tracker is the a vertically centered seed fund that faucets Goldman’s business experience. And the bigger Greycroft Companions has already made a bigger, later-stage funding in considered one of Goldman’s picks. Goldman stated the brand new fund will assist Greycroft make investments extra strategically in AR and VR.
“AR, VR, video games and e-sports continue to grow tremendously and spawn entirely new user experiences and industries,” stated Goldman. “Through our investments, we can help these startups reach the next stage of market adoption. We are committed to helping new teams, not only through capital, but also with connections and strategic advice.”
“We have been working together for four years and are excited to dive deeper into VR, AR, e- sports and video gaming with an operator like Jon who has lived in the space for years,” stated Dana Settle, cofounder and associate of Greycroft, in an announcement. “We have already co-invested with Tracker in a number of companies and believe this sector-specific approach will help us develop expertise and relationships in these quickly emerging ecosystems.”
“Jon understood the vision of our company, supported us enthusiastically and evangelized us to fellow investors to help us to fill our round quickly,” stated Gil Baron, cofounder and CEO of Mindshow, in an announcement. Mindshow has a platform that lets anybody create interactive, animated VR.
Goldman is predicated in Los Angeles, however he stated he’ll take a look at funding alternatives in all areas.
He will even stay a managing associate for Skybound, the mental property holder of The Strolling Useless and different top mental properties.
He earned his chops in gaming as chairman and CEO of Basis 9 Leisure, which was as soon as the biggest unbiased online game developer on the earth, with 11 studios and 1,000 workers globally. He bought the corporate in 2006 to Francisco Companions and has been an lively investor for the previous decade.
Whereas VR has taken off slower than anticipated, Goldman stated he believes that VR nonetheless has actual revenues forward of it.
“The main message of the slowdown is you have to be a little more realistic,” he stated. “When you have frothy valuations, companies run into a wall when they’re raising their next round of money. As you move on from a seed stage, a startup should be able to show facts on the ground, like user growth and revenues. If you don’t have those, it’s a real red flag.”
Goldman stated the fund invested $300,000 into Floreo, which makes therapeutic VR simulations for folks with autism. He stated the fund would concentrate on pre-commercial seed stage corporations.
“I am bullish on these industries despite the trough of disillusionment,” he stated. “There has been a historic trend in games where the drive for more immersion just keeps growing. It’s not going away, as gamers will always want more of it. Esports is not going away. These are not just fads of the moment.”
This publish by Dean Takahashi originally appeared on VentureBeat.
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