2017 will be a year of consolidation for virtual reality, and startups are wise to dig in and make their money last as long as possible: That was one of the key points of advice from some of the industry’s premier investors at the Virtual Reality Intelligence conference in San Francisco Wednesday.
A coming cash crunch for VR isn’t completely unexpected, said GV / Google Ventures General Partner Joe Kraus, who argued that it took three years for the iPhone to become a popular and profitable platform for developers. With VR, it could take even longer. “Going through this valley of despair is important, and is a necessary thing,” he said.
His remarks were echoed by Comcast Ventures Managing Director Michael Yang. “There is massive consolidation that is going to occur,” Yang argued. Startups that don’t want to be swept up in this wave of consolidation should spend their money wisely, and be prepared to survive until virtual reality has become a mass market.