Read Why We Invested in ArborXR
Authored by Matt Waraich
A Learning Revolution in Enterprise
In 2014, when Meta (then Facebook) acquired Oculus for a staggering $2 billion, the tech world buzzed with excitement, anticipating a consumer VR revolution that would change the way we interact with technology forever. Fast forward to today, and the consumer VR revolution has yet to materialize. But while the world waits for consumers to embrace VR, something remarkable is happening in the enterprise sector. Businesses are discovering the incredible potential of XR technology to transform training, operations, and learning. Companies like UPS and Koch have reported VR has helped reduce training time by 75%. Employees and students learn quickly and retain information better. Many are calling it a learning revolution.
The Power of XR in Enterprise
XR is transforming the way enterprises approach training and education. By creating realistic, immersive scenarios, XR enables employees and students to learn and practice skills in a safe, controlled environment. This is particularly valuable in industries where traditional training methods can be costly, dangerous, or impractical.
For example, in the oil and gas industry, XR allows trainees to experience various operating environments without the risks and expenses associated with on-site training. Similarly, in the healthcare sector, XR is being used to simulate complex medical procedures, allowing medical professionals to hone their skills without putting patients at risk.
Other industries, such as manufacturing, retail, and aviation, are also leveraging XR to improve training outcomes, reduce costs, and enhance overall efficiency. Walmart, for instance, has reportedly used VR to train over a million associates, resulting in improved customer service and reduced training time.
The growing adoption of XR in the enterprise sector is evident in the numbers. A PWC study indicates the US market for enterprise XR has already grown eightfold since 2019, and will more than quadruple again by 2030, reaching $537 billion. Statista estimates 98 million VR users and 23 million AR users in 2023 alone. By 2027, AR and VR are both expected to surpass 100 million users worldwide.
The Missing Piece: XR Device Management
Despite the rapid growth of XR in the enterprise, a critical piece of the puzzle has been missing: device management. Early XR product development focused primarily on hardware and content, leaving a significant gap in the infrastructure required to deploy and manage XR at an enterprise scale.
Imagine an IT department having to manually update and manage security and access controls for a fleet of 5,000 VR headsets by plugging them in one at a time. This time-consuming and costly process highlighted the need for a tailored solution to streamline the deployment and management of XR in larger, more complex environments. Enter ArborXR.
ArborXR: Enabling the Future of XR
ArborXR addresses the critical needs for device management, content distribution, and security, empowering businesses to effectively integrate XR technologies into their training and operations.
With ArborXR’s device management solution, companies can remotely and centrally control their XR devices, allowing XR teams and IT departments to manage them quickly and efficiently. The content management feature enables the creation of customized content libraries that can be updated in real-time through ArborXR’s cloud-based platform. Additionally, user management capabilities allow businesses to curate the user experience down to the app level, ensuring that each user has access to the appropriate content and resources.
ArborXR’s comprehensive suite of tools removes barriers to efficient software deployment and utilization, making it easier for enterprises to harness the power of XR. Industry leaders like Walmart and United, as well as top-tier educational institutions such as MIT, Stanford, and Harvard, have already integrated ArborXR into their operations, solidifying the company’s position as a frontrunner in the XR management space.
So, why did Cortado Invest?
Cortado started tracking the company and its founders several years ago when they were still SpringboardVR, a VR entertainment platform for arcades. While running Springboard, the team became experts in XR infrastructure and identified first-hand what the challenges would be for XR adoption on an enterprise scale. The challenges they faced managing content across multiple VR systems in multiple arcades led to the seed idea for ArborXR and a conviction about the significance of the opportunity in enterprise VR device management. This was a great signal for Cortado, as we love to invest in founders who solve problems for industries in which they work and have expertise. When the team sold the entertainment division and officially became ArborXR, we were thrilled for the team and their new trajectory. Cortado invested for the first-time in 2023, and we’re now thrilled to participate in the company’s $12M Series A round alongside other prominent Midcontinent VC firms Mercury Fund and Lewis and Clark Ventures. The A round will allow them to build on their early traction with Fortune 500 enterprises, cement themselves as global leaders in the XR space, and continue to revolutionize the world of device and content management.
About Cortado Ventures
Cortado Ventures is an early-stage venture capital firm that invests in ambitious, growth-driven companies, backing a new generation of economic prosperity for the Midcontinent region, defined as Oklahoma, Texas, Arkansas, Missouri, Colorado, Kansas and New Mexico. As one of the largest VC funds in Oklahoma, Cortado’s focus is on tech companies bringing innovative solutions to the energy and logistics, life sciences, and the future of work sectors. For more information, visit cortado.ventures.