Top 81 Virtual Reality Startups to Watch in 2026
The virtual reality sector is expanding into areas like generative AI, healthcare, and industrial hardware.
For example, entertainment company Meow Wolf has raised $185.2M, while generative AI startup Luma AI has secured $157.3M.
Below is our list of 81 Virtual Reality startups worth keeping an eye on.
Failory's Top 10 Picks
LAV Labs builds technology for human enhancement, centered around its social metaverse platform, LAV. They use a combination of AI, AR, and VR to create immersive digital spaces where people can connect and build communities.
| Headquarters | Santa Monica, California, United States |
| Year Founded | 2025 |
| Founders | Duránd F. Davis Jr., Maya Elz Davis |
| Funding Amount | $65M |
| Startup Size | Founding Team (1-10) |
| Last Funding Status | Debt Financing |
| Top Investors | JetDebt Finance, Jet Investments Group, Davis&Davis Venture Partners, JET Venture Capital, JET VC-IRA FUND |
Luma AI builds a generative AI tool that transforms simple text descriptions into high-quality 3D models. The company's platform helps creators and developers rapidly generate assets for use in video games, AR, and VR applications.
| Headquarters | Palo Alto, California, United States |
| Year Founded | 2021 |
| Founders | Alberto Taiuti, Amit Jain |
| Funding Amount | $157.3M |
| Startup Size | Lean Team (11-50) |
| Last Funding Status | Series B |
| Top Investors | General Catalyst, Andreessen Horowitz, NVIDIA, South Park Commons, Amazon |
Emerge builds a communication platform that brings the sense of touch to virtual interactions through ultrasonic waves. Their flagship product, the Emerge Wave-1, is a tabletop device that allows users to physically feel digital content and connect with others in the metaverse.
| Headquarters | Los Angeles, California, United States |
| Year Founded | 2015 |
| Founders | Isaac Castro, Mauricio Teran, Sly Spencer- Lee |
| Funding Amount | $37.5M |
| Startup Size | Lean Team (11-50) |
| Last Funding Status | Series A |
| Top Investors | Gaingels, Alumni Ventures, Golden Ventures, Alpaca VC, One Way Ventures |
Soul Machines develops lifelike digital people to serve as engaging and empathetic AI assistants. The company's patented Digital Brain™ technology powers these avatars, aiming to humanize the interactions between people and machines.
| Headquarters | San Francisco, California, United States |
| Year Founded | 2016 |
| Founders | Greg Cross, Mark Sagar |
| Funding Amount | $121.4M |
| Startup Size | Mid-Size Team (51-250) |
| Last Funding Status | Convertible Note |
| Top Investors | Temasek Holdings, Lakestar, Salesforce Ventures, ICONIQ Capital, SoftBank Vision Fund |
Sandbox VR operates a global network of venues offering full-body virtual reality experiences for social entertainment. Players enter a holodeck-like environment, using motion capture and haptic suits to feel like they are living inside a game.
| Headquarters | San Francisco, California, United States |
| Year Founded | 2016 |
| Founders | Steve Zhao |
| Funding Amount | $63M |
| Startup Size | Large Team (251-1,000) |
| Last Funding Status | Series B |
| Top Investors | Andreessen Horowitz, Craft Ventures, Quiet Capital, Floodgate, Abstract |
Neurable develops AI-powered tools that translate brain signals into actionable commands for everyday devices. Their non-invasive brain-computer interface technology is designed to create more intuitive interactions within augmented and virtual reality environments.
| Headquarters | Boston, Massachusetts, United States |
| Year Founded | 2015 |
| Founders | Adam Molnar, James Hamet, Ramses Alcaide |
| Funding Amount | $22.8M |
| Startup Size | Lean Team (11-50) |
| Last Funding Status | Series A |
| Top Investors | National Science Foundation, Global Brain Corporation, Hartmann Capital, FundersClub, PJC |
Meow Wolf creates immersive and interactive art experiences that blend surreal storytelling with large-scale, explorable installations. These unique entertainment venues use a mix of digital media, augmented reality, and hands-on art to create narrative-driven worlds for audiences.
| Headquarters | Santa Fe, New Mexico, United States |
| Year Founded | 2008 |
| Founders | Benji Geary, Caity Kennedy, Corvas Brinkerhoff, Emily Montoya, Matt King, Sean Di Ianni, Vince Kadlubek |
| Funding Amount | $185.2M |
| Startup Size | Large Team (251-1,000) |
| Last Funding Status | Grant |
| Top Investors | Alsop Louie Partners, New Mexico Economic Development Department, Creative Startups |
XRHealth operates virtual clinics that use extended reality technology for therapeutic care. Their platform allows patients to access physical, occupational, and behavioral health treatments from the comfort of their home.
| Headquarters | Needham, Massachusetts, United States |
| Year Founded | 2016 |
| Founders | Eran Orr |
| Funding Amount | $40.8M |
| Startup Size | Mid-Size Team (51-250) |
| Last Funding Status | Venture Round |
| Top Investors | AARP, Asabys Partners, Israel Innovation Authority, Flint Capital, MassChallenge |
Thirdverse is a game studio that develops and operates multiplayer virtual reality games incorporating web3 technology. The team focuses on creating shared experiences for players in immersive, persistent virtual worlds.
| Headquarters | Tokyo, Tokyo, Japan |
| Year Founded | 2020 |
| Founders | Hironao Kunimitsu, Masaru Ohnogi, Satoshi Ban, Takafumi Inagawa |
| Funding Amount | $48.6M |
| Startup Size | Mid-Size Team (51-250) |
| Last Funding Status | Venture Round |
| Top Investors | World Innovation Lab, Mitsubishi UFJ Capital, Mizuho Capital, Animoca Brands, Nissay Capital |
Varjo develops high-end virtual and mixed reality hardware and software for professional and industrial use. Their headsets are distinguished by human-eye resolution, offering photorealistic immersion for complex applications like pilot training and automotive design.
| Headquarters | Helsinki, Southern Finland, Finland |
| Year Founded | 2016 |
| Founders | Klaus Melakari, Niko Eiden, Roope Rainisto, Urho Konttori |
| Funding Amount | $171.7M |
| Startup Size | Large Team (251-1,000) |
| Last Funding Status | Debt Financing |
| Top Investors | European Investment Bank, NVIDIA, Tesi, EQT Ventures, Lifeline Ventures |
71 Additional Virtual Reality Startups Worth Following
Our top ten picks are leading the charge, but they’re just one part of a much bigger story. Together, the companies on our full list have raised more than $2.5 billion to create new experiences in media, healthcare, and education.
Some are just getting started, while others are already growing fast. Here’s a look at the other startups shaping virtual reality.
| Startup | Main Industry | Year Founded | Amount Raised | Last Funding Round |
|---|---|---|---|---|
 Loft Dynamics | Mobility | 2016 | $53.3M | Series B |
 Niantic | Media | 2010 | $770M | Series D |
 VRChat | Communications | 2014 | $95.2M | Series D |
 Interplay Learning | Education | 2016 | $44.5M | Private Equity |
 Wave | Media | 2016 | $42.5M | Corporate Round |
 Strolll | Media | 2019 | $23.4M | Series A |
 XPANCEO | Media | 2021 | $290M | Series A |
 TRIPP | Gaming | 2017 | $26.3M | Convertible Note |
 Odyssey | AI | 2023 | $27M | Series A |
 Praxis Labs | Enterprise | 2019 | $18.7M | Series A |
 Gaudio Lab | Media | 2015 | ₩12.4B | Series B |
 Xreal | Media | 2017 | $333.7M | Venture Round |
 Aircards | Media | 2019 | £3M | Venture Round |
 Aonic Group | Gaming | 2021 | $152M | Private Equity |
 Resolution Games | Media | 2015 | $38.5M | Series C |
 V-Nova | Data | 2011 | $42.8M | Series C |
 MindMaze | Healthcare | 2012 | $340.7M | Venture Round |
 Zero Latency | Design | 2013 | $8.9M | Series B |
 Ultraleap | Media | 2013 | $166.8M | Series D |
 Crion Technologies | Media | 2016 | ₹45M | Venture Round |
 PeriVision | AI | 2019 | €3.5M | Grant |
 MANNA | Media | 2021 | $25k | Grant |
 SOMAREALITY | Analytics | 2019 | €4.4M | Seed |
 Treble | Media | 2020 | €22.3M | Series A |
 Sidequest | SaaS | 2019 | €15.6M | Series A |
 Nekcom | Media | 2011 | $23M | Corporate Round |
 Emteq | AI | 2015 | £9.7M | Angel |
 Ready Player Me | Media | 2013 | $72.6M | Series B |
 machineMD | AI | 2019 | CHF5.9M | Venture Round |
 Neiry | Education | 2019 | RUB841M | Venture Round |
 Condense | Media | 2019 | £5.1M | Venture Round |
 XRSpace | Hardware | 2017 | $25M | Corporate Round |
 CUREosity | Healthcare | 2018 | €8.4M | Seed |
 3vjia.com | Retail | 2013 | CN¥800M | Series D |
 PlaceHolder | Design | 2016 | ¥1.3B | Series C |
 SenseGlove | Media | 2015 | $3.6M | Series A |
 RETìníZE | Media | 2015 | £3.6M | Venture Round |
 Kiin | Enterprise | 2015 | $4.6M | Seed |
 Victoria VR | Crypto | 2020 | $5.5M | Seed |
 3D Digital Venue | Media | 2012 | $3M | Seed |
 Sense Arena | Sports | 2017 | $5.5M | Venture Round |
 ORamaVR | Education | 2016 | €1.4M | Seed |
 Envoke | Media | 2019 | £2M | Venture Round |
 vTime | Enterprise | 2013 | $7.6M | Series A |
 photonicSENS | Media | 2014 | €6.9M | Grant |
 Kanda | Enterprise | 2011 | €2.1M | Seed |
 Retail VR | Enterprise | 2018 | €1.5M | Seed |
 Vestan | Media | 2017 | $2.5M | Pre-Seed |
 LocalBini | Travel | 2020 | CHF600k | Convertible Note |
 Talkout | Media | 2020 | £1M | Seed |
 Seemore | Media | 2016 | €300k | Pre-Seed |
 MetaverseME | AI | 2020 | $1.5M | Pre-Seed |
 OWO | Gaming | 2019 | $1M | Seed |
 Infinite Foundry | Media | 2017 | $500k | Seed |
 Oisoi Studio | Hardware | 2022 | €450k | Seed |
 Cyborn | Media | 1998 | €2M | Seed |
 Enliven | Enterprise | 2015 | €1M | Venture Round |
 FornixVR | Healthcare | 2020 | $250k | Seed |
 Planetary Metaverse | Media | 2020 | PLN10M | Corporate Round |
 Eyevolution | AI | 2016 | CN¥13M | Series A |
 Swave Photonics | Media | 2023 | $1.2M | Pre-Seed |
 Curiscope | Media | 2015 | €1.1M | Seed |
 mSurgery | Media | 2019 | $250k | Grant |
 Viar.Live | Media | 2020 | €100k | Pre-Seed |
 Nervtech | InsurTech | 2013 | €290k | Series A |
 Altair Digital | Media | 2015 | $40k | Seed |
 H&MV Engineering | Manufacturing | 1997 | — | Private Equity |
 Future Technologies | Media | 1989 | — | — |
 MaxAl | AI | 2016 | — | — |
 Naxcon | AI | 2016 | — | — |
 DigitAlb | Media | 2004 | — | — |
