Social VR app AltspaceVR is shutting down its main service after running out of cash. The app was one of the first VR social experiences to gain traction and..
Social VR app AltspaceVR is shutting down its main service after running out of cash. The app was one of the first VR social experiences to gain traction and was available across a variety of platforms.
In a blog post titled “A Very Sad Goodbye, ” the company detailed that the social VR community will be shutting down next week in a move that it described as “surprising, disappointing, and frustrating.”
The startup, founded in 2014, raised nearly $16 million in funding. Most recently the startup closed a $10.3 million Series A led by Raine Ventures. It appears the company burnt through the funding and was in the process of raising another round when it fell through.
“It looked like we had a deal for our next round of funding, and it fell through. Some combination of this deal falling through and the general slowness of VR market growth made most of our investors reluctant to fund us further. We’ ve been out fundraising but have run out of time and money, ” the post detailed.
In the post, the company revealed it had just 35,000 monthly active users.
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