Oct 12, 2021 - Economy

AR company Magic Leap raises $500 million from "existing investors"

Illustration: Sarah Grillo/Axios

Illustration: Sarah Grillo/Axios

Magic Leap, a Plantation, Florida-based augmented reality company, raised $500 million at a $2 billion post-money valuation from unspecified "existing investors."

Why it matters: This is a company that lives up to its name, at least in terms of separating VCs from their money, as Magic Leap has now raised nearly twice as many dollars as its current valuation. Maybe that's why none of those return backers are eager to be identified.

History: Magic Leap was valued at $6.9 billion in a 2019 round, and in 2014 raised at a $1.5 billion post-money valuation. Last year it replaced founding CEO Rony Abovitz with former Microsoft exec Peggy Johnson.

The bottom line: "The company has been trying to turn things around by revamping its messaging with a focus wholly on enterprise audiences after years of trying to compete with Microsoft for military contracts (and failing) and trying to compete with Microsoft for enterprise clients (with some success), all while attempting to also stay on consumer radars by bankrolling expensive games for their very expensive headset." — Lucas Matney, TechCrunch

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