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| Screenshot of Magic Leap's 3-D virtual reality simulation--Courtesy of Magic Leap |
As med tech companies set their sights on wearable technology with 3-D imaging capabilities, Magic Leap brought in $542 million in funding to develop its innovative eyeglasses-like device that could provide a new interface for patient-doctor communication.
The Florida-based startup raked in funds from tech giant Google ($GOOG), private equity firm KKR ($KKR) and venture capital firms such as Kleiner Perkins to roll out virtual-reality goggles that project two separate images onto the eyes, allowing users to see 3-D objects, The Wall Street Journal reports. The company plans to use the infusion of cash to ramp up hiring and prepare the product for manufacturing, and will appoint Sundar Pichai, the head of Google's Android, Chrome and apps businesses, to its board. Magic Leap will also add Don Harrison, Google's head of corporate development, as a board observer.
The deal values Magic Leap at $2 billion, people familiar with the matter told the WSJ, and sets the company up to compete with rivals like Facebook ($FB), which paid $2 billion earlier this year to buy virtual-reality headset maker Oculus Rift. Magic Leap CEO Rony Abovitz said he sees the company's product replacing PC monitors and smartphone screens, and touts the device as superior to current models on the market. Unlike other virtual-reality goggles with stereoscopic imaging, Magic Leap's technology creates a sense of depth but does not trigger nausea, Abovitz told the newspaper.
Magic Leap is not the only startup rolling out next-generation wearable health devices. In August, Wearable Intelligence secured $7.9 million in venture capital to develop applications that wirelessly transmit patient information to care providers through platforms such as Google Glass. 3-D virtual-reality company 3D Systems is also hard at work on its surgical-simulation platforms, raising $317 million in a May follow-on round and closing its second quarter with $570.3 million in cash, funds that the company plans to funnel toward future acquisitions.
- read the WSJ story (sub. req.)