Here's how you can secure funding in the Virtual Reality (VR) sector.

Key word here “niche.” Try to avoid playing in a crowded sector dominated by key players, like beat games, but if you do really do your homework. Understand what gaps exist and how your solution solves them. Its always easier to be in greenspace but you can be too early and its harder to compete in a crowd but theres always traction. In either event you need to understand the customer’s market better than the customers.

Securing funding in the VR sector involves several key steps. First, develop a strong business plan that outlines your VR project's potential market impact, revenue models, and growth projections. Highlight any unique features or technologies that set your project apart. Next, build a compelling prototype or demo to showcase the VR experience and its practical applications. Network with potential investors through industry events, pitch competitions, and VR-focused conferences. Utilize crowdfunding platforms to gain early support and visibility. Lastly, consider government grants or innovation funds that support emerging technologies like VR. Demonstrating a clear value proposition and market need will be crucial in attracting investment.

In simple words: What makes your VR project stand out? If you’re in healthcare, maybe your VR tech offers surgeons the most realistic training simulations. Highlight what’s unique about your project and why it’s better than what’s already out there. CONCLUSION: Investors want to see that your VR solution isn't just cool (so many others offer "cool" solutions) but also useful and that people will actually want to use it. Show how your project can be widely adopted and how it can make lots of money.

Knowing where the market is and the problem really helps. Once you know the exact problem and missing gap in approach then propose the solution in this case VR. Research what's already been done and what the market has not seen yet that they can utilize. This is where you got to know the niche and where the market is in demand but has not seen a specific solution yet for a specific problem with this technology. Once you have that all in place the next step would be to conduct stakeholders and customer interviews. They will provide feedback on what they really want from you. Once you have that and you are confident your solution is the key then you can look into funds like sbir/sttr grants. There is also the ycombinator program.

"A solid business plan is your ticket to success and crucial for getting funding" ;( Well, that's what they say, but I've found that it's more about the team and what everyone brings to the table. The business plan is nice to have, but it's not everything. VCs know that it's just a projection, and they understand that things might change along the way. That's the reality of business, and it's all about adapting and evolving.

Your business plan helps you develop your pitch to convince the investor. Creating one will be a self-reflection process on how your team divides and puts your resources to the best use. The more you plan, the more you can convince investors to trust your project with funds.

Having a solid business plan is key for a crucial VR business and technology especially when securing funds for the R&D that your solution will hopefully solve. One key thing you can do is come up with a business canvas model. When I did my startup that created VR technologies combined with robotic exoskeleton we went through the National Science Foundation I-Corps program where they made us come up with a business canvas model. That helps because in a business canvas model you can identify who the exact stakeholders are, investors are, customers are, competitors are and more. This information will really help you dive deeper into the business plans.

VR really needs a prototype otherwise you’re just gesticulating excitedly. Build a vertical slice, a narrow experience that showcases the core conceit of your VR product. Investors and customers already understand the difficulties of XR UX, so dont worry about polish if you can’t afford it: something rough is better than nothing.

A prototype shows that you're serious about your idea and that it could really work! Yes, true. And this is obvious. The most important thing is to create a SaaS product. VCs are always looking for the next big money-making machine! ;)

Creating a prototype is a crucial step in getting funding for your VR project because it serves as tangible proof of your concept's viability. It demonstrates the potential of your idea in the real world, allowing investors to experience the vision firsthand. This not only builds credibility but also helps to illustrate the user experience and technical feasibility, making it easier for potential backers to understand the project's impact and potential return on investment.

Creating a vertical slice in VR development is crucial as it demonstrates a polished, fully-functional segment of the game, showcasing core mechanics, art style, and user experience. This tangible snapshot helps stakeholders grasp the project's potential, easing concerns about feasibility and quality. If resource constraints make a vertical slice impractical, a strong mechanical proof of concept becomes essential. It should highlight the unique value the VR experience offers to users, focusing on innovative mechanics and engaging interactions

Each technology needs a good prototype or what we call a Minimal Viable Product (MVP). Having a good VR prototype of your application and technology can really help give your investors a better understanding of what your solution is and what you're trying to solve and have a good idea to assess if this is really the solution. Coming up with a good MVP involves a good amount of commitment and not something you can just easily BS to investors or stakeholders. MVP shows a good functioning product that represents your idea and effort on the solution along with thorough understanding if this will actually solve the problem in that specific area you're targeting. This is crucial for securing funds whether via VC, angel investor or federal grants

As a small, yet rapidly evolving community, VR is still defining its consumer value and establishing the major companies and key figures driving its direction. Events like SXSW, Venice, Cannes, NAB, AWE, GDC, and Tribeca provide crucial opportunities for building professional connections. These gatherings foster collaboration, knowledge sharing, and innovation.

Networking offers numerous benefits when seeking funds for your project. Primarily, it provides access to potential investors who are interested in funding you. You can pitch your project directly to them and make it a conversational topic. Another advantage is that the more extensive your network, the greater your chances of earning investors' trust. Additionally, networking provides mentorship and guidance to refine your pitch and helps you find partnership opportunities with companies.

Networking is so critical for any job. People say when you are a student you should focus on school and classes. Complete baloney especially in the emerging tech space you have to get started from day one you enter college. It's never too early or too late to network. Networking especially in areas like VR give you the better edge because this market is so niche and needs more brilliant people. Your networks know other sources that can guide you to leading a successful and commercial product

Investors are looking for more than just a great idea, they want to see a committed and capable entrepreneur. So, practice your pitch, believe in your project, and show them why you and your VR concept are worth the investment!

Investors are looking for key words and the perfect pitch in what they want to see when you present the problem your targeting, your solution and how your technology will really fill that missing gap. You also should know and be ready to answer any tough questions and back up your statement really well because the key to any success is how well you can back up your statement

If your company is based in a country with (scientific) government grants, then go for it!! Go for a government grant aimed at supporting innovative technology projects. It takes lots of effort to align your proposal with their research and development objectives, but it is worth it. Why? -The grant provides you with non-dilutive funding, allowing you to move your project forward without sacrificing ownership. - - And it's a perfect learning experience in government thinking ;))

From our last four year of bootstrapping at VEDX Solutions, we have met with multiple funders who thought our offering was interesting but not quite fit for funding due to a few major factors. I'm writing this to help our fellow colleagues out there learn from the beginning: 1. Build a base that shows growth - Players or subscriptions 2. Clearly be solving a customer demand and show that through #1 3. Have your budget ready for scale and don't be afraid to ask for enough to actually capture market share. 4. Have your IP in order and tech stack listed clearly. 5. Tell a story that is compelling with the numbers - not what you hope to do but what you are solving with your Beta. It it is never too late to pivot - watch your burn.

There are various funding sources especially for VR technology. Super ventures, Angel investors and venture capitalists. If you're doing R&D oriented work then look into federal grants such as SBIR/STTR offered by agencies such as NSF, NIH, NASA, DoD and more. Before applying for those competitive grants you want to have a company with a good team and understand how you can start a company. Luckily there are programs such as the National Science foundation I-Corps program which fund you a mini grant that can be used for equipment and customer discovery. If you are successful in I-Corps you will have a better chance getting the SBIR/STTR grants.

Don’t be misled by the current market for VR, we’re still in the early adopter phase skewing perceptions of what will be the Next Big Thing. This has yet to happen outside the rapid advances in hardware, so be persistent in your vision.