Finland VR/XR startup Varjo secures €46m Series C funding

Finland VR/XR startup Varjo secures €46m Series C funding

Published: 12-08-2020 15:01:00 | By: Pie Kamau | hits: 5135 | Tags:

Helsinki-based startup Varjo, a leader in industrial-grade VR/XR hardware and software, announced it has closed a €46 million round of Series C funding. Tesi, NordicNinja, and Swisscanto Invest by Zürcher Kantonalbank are among the new investors contributing to the round, in addition to follow-on investment participation from existing investors including Lifeline Ventures, Atomico, EQT Ventures and Volvo Cars Tech Fund.

The company also announced the appointment of Timo Toikkanen (previously president and COO of Varjo) as the new CEO. Co-founder and previous CEO, Niko Eiden, will continue to drive the company’s technological innovations as CXO and a board member.

Timo Toikkanen, CEO of Varjo said: “We are seeing tremendous demand for virtual and mixed reality use cases, particularly as much of the world continues to work remotely. When you combine the photorealistic resolution and accurate, integrated eye tracking found in our devices with the broad software compatibility we offer, the possibilities for creating, training and running research in immersive environments are endless. With support from our growing group of investors, we look forward to scaling our operations and delivering the cutting-edge technology our customers need to transform the way they work.”

With this latest infusion of capital, the company has raised just over $100 million to date, which will allow Varjo to accelerate its global expansion and development of industry-leading hardware and software products. Varjo is the first and only company in the world to deliver human-eye resolution virtual and mixed reality devices to meet the most demanding enterprise applications across training and simulation, design and engineering and research. Global enterprises including Volvo Cars, Boeing, Audi and Siemens use the company’s XR-1 Developer Edition, VR-2 and VR-2 Pro devices to conduct immersive astronaut and pilot training, design the cars of the future, streamline product development, and more.

Keith Bonnici, Investment Director at Tesi said: “Varjo has established itself as a proven industry leader, as evidenced by its ability to continually push the boundaries of virtual and mixed reality and support the most demanding enterprise applications across industries. With their history of breathtaking product innovation, a strong and experienced team and increasing market demand, we are excited to be on board on their journey of revolutionizing computing for all.” Tesi’s investment in Varjo is part of the EFSI investment programme set up between Tesi and the European Investment Bank enabling large investments in Finnish SMEs and midcaps.

Petteri Koponen, founding partner at Lifeline Ventures and Varjo’s chairman of the board said: “We were early seed investors in Varjo and believed in their vision for how immersive computing could transform the way professionals work from the very beginning. In less than four years, Varjo has delivered both industry-leading hardware and software to the market. We are thrilled to be participating in this latest funding round as the company continues to scale and deliver an ecosystem capable of bringing enterprise XR adoption mainstream.”

This round of funding comes on the heels of a year marked by company success and product innovation. Recent milestones include:

  • Expansion of the company’s global operations and reseller network to over 40 countries in North America, Europe, the Middle East and Asia Pacific with the launch of sales and direct shipping to key markets including Singapore, Israel, South Korea, Australia and New Zealand.
  • Strong quarter-over-quarter customer growth with new customer acquisition of visionary enterprise companies including Boeing Starliner, Siemens, KIA, and Lockheed Martin.
  • A commercial partnership with MeetinVR to deliver photorealistic virtual collaboration, a much-needed solution for users to be able to collaborate remotely with colleagues, customers and partners around the world in an immersive and realistic environment.
  • The launch of real-time chroma key and marker tracking functionality so XR-1 Developer Edition users can seamlessly blend real and virtual content.