An Exploration of the Horizon in VR, AR, and AI from the Perspective of Venture Capitalist Tipatat Chennavasin

Tipatat Chennavasin As a venture capitalist and the General Manager of The Venture Reality Fund has provided valuable perspectives to Metaverse Post on the current dynamics of the VR, AR, and AI landscapes. With immersive technology applications branching out from gaming and entertainment, VR is on track to becoming a billion-dollar market, revealing significant opportunities in fields like healthcare, education, training, and e-commerce.

The Venture Reality Fund is dedicated to investing in early-stage ventures that focus on the realms of virtual reality, augmented reality, and mixed reality technologies. Their investment strategy zeroes in on innovative companies developing cutting-edge technologies, tools, and content tailored for immersive tech platforms. The VR Fund has celebrated successes with popular titles such as Beat Saber and Rec Room, which have achieved substantial revenue through software sales and third-party applications available on the Quest store.

Chennavasin has observed a notable surge in the popularity of generative AI, with more creatives exploring AI tools for content generation. While both VR and AR are capturing attention, the latter's growth has been hampered by the limited availability of new AR devices in the marketplace.

Nonetheless, the market has demonstrated AR's potential as a viable platform following the success of mobile technology, compounded by exciting advancements in the AR sector that are attracting investor interest.

VR Expands Beyond Just Gaming and Entertainment

Though gaming remains a key domain for VR, Chennavasin highlights its growing applications in training and 3D design. Many businesses, such as automotive manufacturers and sports brands like Adidas and Nike, are utilizing VR for product development and teamwork. He anticipates that the future of work will increasingly intertwine VR, enabling teams located globally to evaluate and discuss projects in real-time. Chennavasin views VR as a transformative technology capable of addressing real-world issues and leaving a meaningful imprint on society.

Moreover, numerous successful implementations of VR and AR have been observed in commerce. For example, Obsess has been crafting virtual shopping experiences for some of the leading fashion brands worldwide, while L’Oreal has adopted AR technologies to facilitate virtual makeup trials. These cases illustrate the adaptability and value of VR and AR in the retail sector.

“I find it fascinating as we move towards a metaverse-driven e-commerce framework, where the emphasis shifts from utilizing virtual technologies to acquire physical goods to purchasing virtual items instead. We're already witnessing the early signs of this shift, and I believe it will continue to captivate interest,”

Chennavasin shared.

Chennavasin pointed out two companies in The VR Fund’s portfolio that are harnessing VR to tackle real-world challenges. This includes Apprentice, which accelerates COVID vaccine distribution, and Proprio, specializing in advanced surgical navigation. Their VR technology empowers surgeons to visualize a patient’s anatomy and carry out intricate procedures with remarkable precision. These groundbreaking innovations are profoundly impacting the healthcare sector and revolutionizing our approach to medical practices.

Recent Trends and Major Players in the VR Hardware and Software Field

Chennavasin notes that currently, Meta holds a dominant position in VR hardware, particularly with its Quest series. However, an upcoming innovation in the VR space promises an exceptional playing experience, primarily attributed to its haptic feedback technology. He also acknowledged that other companies like Pico and Apple VR headset is highly anticipated, and the PlayStation VR2 are making significant strides in the VR landscape. HTC A portfolio company of the Venture Fund, Vario, has been at the forefront of producing VR headsets equipped with retina-level resolution for several years. Their Enterprise headset exemplifies the potential future of this technology. The XR3 is marketed as a premium headset, while the Quest is designed to appeal to a broader consumer base. Notably, Vario's headset has become the first to receive EU certification for eye-tracking training in a virtual environment, proving to be as effective as real-world training, offering both safety and cost-efficiency.

On the software front, Chennavasin highlighted Beat Saber, a VR game created by a small team from the Czech Republic. Despite its development budget being under a million dollars, the game has grossed more than $350 million. Chennavasin commends this success story as a testament to the vast opportunities available for anyone aiming to craft a unique and profitable venture in the VR domain.

“Finding investments can be challenging, but what excites me about venturing into VR now is the ability to develop products and services using just a Quest headset and a PC, providing an accessible starting point. There’s no need for extensive resources or a multitude of servers to create engaging VR experiences. Take Beat Games as an example; they launched Beat Saber with a budget of less than half a million dollars, coming from a passionate team of innovators,”

The World’s Growing Enthusiasm for VR and the Metaverse

Chennavasin said.

Chennavasin believes that two years ago marked a pivotal moment for VR, coinciding with the launch of Quest 2, which debuted with exceptional games at an affordable price, alongside the arrival of Half-Life: Alyx. Today, we are witnessing a renewed interest in VR with the introduction of PlayStation VR 2, featuring an impressive roster of games like Resident Evil and Grand Horizons.

New devices and immersive experiences, such as Grand Theft Auto being adapted for the Quest platform, will inevitably continue to spark interest in VR. Although the speculation surrounding the metaverse has stirred curiosity around VR, many existing experiences – like Fortnite and Roblox – have yet to embrace native VR capabilities. However, as the metaverse continues to evolve, changes in this regard are anticipated.

The surge of NFTs in digital fashion and the financial success of Fortnite's marketplace through digital apparel have kindled interest in the potential of virtual commerce. Major fashion brands are exploring metaverse experiences, such as Balenciaga’s cloud-based 3D game, to engage future consumers. With increased time spent online, the significance of a person’s online identity and presence is rising, amplifying the demand for high-quality virtual fashion and avatar customization.

As we see more applications where avatars take center stage, it underscores the growing importance of their appearance. These emerging trends imply that virtual commerce and avatar personalization are set to gather more momentum moving forward.

Companies are already developing virtual dating Chennavasin asserts that we’re in a distinctive phase where a sufficiently large user base for VR allows for the creation of projects that can unearth extraordinary possibilities once shared with early adopters. However, a significant hurdle is that awareness about VR is still limited, making it essential to design products that will compel people to engage with them. To succeed, developing something that sparks an interest in acquiring a VR headset is crucial. This is especially true for applications beyond gaming, where demonstrating considerable value is key to justifying the investment in a headset. Fitness applications exemplify this perfectly, proving that users are willing to invest in tools that deliver significant advantages to their daily lives.

The Potential of VR/AR Technology

Looking to the future, Chennavasin envisions productivity and facilitating a new work paradigm as the next great opportunity. Rather than merely adapting traditional workplaces into VR settings, there’s a pressing need to innovatively redesign digital workspaces to attract those who prefer not to be bound to a desk. Both VR and AR are uniquely positioned to fulfill that need.

One particularly promising frontier for VR and AR lies in the realm of 3D design. As industries like fashion increasingly employed 3D design tools in their daily operations, the demand for more effective content creation tools within VR has risen. Companies such as ShapesXR are pioneering the way forward with VR-native applications tailored for 3D design. While VR and AR have already shown their merits in gaming, their potential extends far beyond that, hinting at the promise for broader adoption and meaningful everyday applications.

Traditionally, the process of grasping basic 3D modeling concepts can take months of lessons and adaptation to think spatially with a 2D display. Yet, VR technology has the capability to revolutionize that workflow, creating a more engaging and intuitive experience. It turns the learning process into something enjoyable, akin to playing with Lego or molding clay, making it more accessible for everyone, even young children. In the realm of VR, one can acquire these skills in just hours of practice, contrasting starkly with the months typically required.

“I genuinely believe that the true strength of VR is its capacity to seamlessly connect the digital and physical realms, rendering interactions within virtual environments as natural and intuitive as those in the real world. Take 3D modeling and computer-aided design, typically regarded as complex and monotonous using traditional hardware like a keyboard and mouse. Many individuals find they must undertake specific courses and training to excel in such tasks. However, VR holds the potential to streamline this entire process, enabling users to manipulate and generate 3D objects in a far more instinctive and engaging manner,”

Interview with Nick Rose, Founder & CEO of Ethernity and Ethernal Labs at NFTLA

Chennavasin said.

Read more interviews:

• Exploring the Horizons of VR, AR, and AI: A Discussion with Venture Capitalist Tipatat Chennavasin at Metaverse Post
• Tipatat Chennavasin, a leading venture capitalist and General Manager of The Venture Reality Fund, recently shared his thoughts with Metaverse Post about the current landscape of VR, AR, and AI.
• Exploring the Horizons of VR, AR, and AI: A Discussion with Venture Capitalist Tipatat Chennavasin