Now is the time to invest. Virtual Reality is not a good investment.
Virtual reality has come far since the days of arcades, Nintendo’s Virtual Boy, and Disney World’s Disney Quest (Aladdin’s Magic Carpet Ride anyone?).
No longer are users plagued by motion sickness due to delayed response times and unsynced head movements. Thanks to products such as the HTC Vive we are able to experience room scale VR, literally stepping into a virtual world. And yet, virtual reality is still in its infancy.
Virtual reality isn’t yet a good investment.
Kevin Rose, serial investor and co-founder of Digg among other startups, has invested in companies such as Uber, Medium, and Blue Bottle Coffee. Needless to say, Kevin knows a thing or two about finding worthwhile investments. Given his track record and investment strategy, Kevin has this to say about investing in virtual reality:
“…the current incarnation of virtual reality gear doesn’t pass my test. Units are large, clunky, require insanely expensive computers, and setup is a mess. The experience, while fun, isn’t an order of magnitude better than traditional gaming.
“So, as of right now, I’ve avoided VR investments. At some point (years out) the right mixture of power, size, price, and reality technology will combine into a device that will likely see mass adoption. But as of right now, I’m a pass.”
CEO of Unity Technologies, John Riccitiello projects the userbase of virtual reality at ~100 Million people by 2020. While this might not pass the expectations of some serial investors looking for technologies that will become a part of our daily lives within 3 years, these numbers are nothing to balk at.
In 2015 I wrote an article regarding the cannabis industry, specifically in Colorado.
In it I quoted the manager of a cannabis business accelerator who spoke at a meetup in Boulder, CO.
“[The cannabis industry] is the smallest it will ever be.”
I believe the same can be said about the virtual reality industry. And while I believe the cannabis industry will grow into an extremely large industry, virtual reality will easily trump it.
Virtual reality provides more than just products.
It facilitates services, provides untold experiences, and opens the floodgates for new platforms. Virtual reality and the industry surrounding it will never be smaller than it is today. Mass adoption may take 3–5 years, but like smartphones and the internet we will see VR pervading daily life.
The innovations in virtual reality are being made at an ever increasing rate.
More users are pouring in and companies are dedicating entire departments to the development of VR. As investors inject capital in VR investments, the speed of innovation increases. As innovation increases, consumer level virtual reality prices drop and quality rises.
Mass adoption is just around the corner.
The effect that mass adoption of VR will have on society is unknown. Virtual reality is a tool capable of providing new levels of education, experiences, and creativity beyond our current imagination. Experiences that expand our ability to empathize with the rest of humanity, outside our own communities, could change society at its very core. Physical experiences without the constraints of price tags could solve the issues of sedentary lives in the western world.
The possibilities are endless.
Virtual reality may be the next great step in human connection. VR could also lead us towards a more dystopian future, trapping us in a world outside of reality and away from each other. With VR development in its infancy and increasing in speed, it is up to us how we choose to steer this amazing technology.
“If we continue to develop our technology without wisdom or prudence, our servant may prove to be our executioner.” -Omar N. Bradely
Virtual reality and the industries surrounding it are the smallest they will ever be.
Although VR may be a risky investment, this may be the best possible time to invest. You can invest with money, time, or knowledge. By investing in virtual reality now, we have the opportunity to steer its course towards the best possible future for humanity.
