US-based augmented reality (AR) technology producer Magic Leap raised $502m in a series D round yesterday led by Singapore state-owned investment firm Temasek.
Edbi, the dedicated corporate investment arm of Singaporean government agency Economic Development Board, contributed to the round, as did mass media company Grupo Globo, e-commerce and internet group Alibaba and internet company Google.
Financial services providers JP Morgan Investment Management, Fidelity Management and Research (FMR), Janus Henderson Investors and T Rowe Price also contributed to the round.
The transaction was first rumoured a month ago, before a regulatory filing last week revealed the company had authorised the issue of approximately $1bn worth of series D shares.
Magic Leap has largely remained in stealth mode since it was founded in 2011, but details that have emerged to date suggest the company is developing an AR headset that projects patterns of light on to a user’s eyes, superimposing virtual objects on physical surroundings.
The technology emulates the way the human eye naturally processes the environment, avoiding the nausea that some users may experience with rival devices. The company will reportedly launch a device called Magic Leap One within six months to a small group of customers.
Magic Leap has secured a total of $1.9bn in equity funding to date.
In February 2016, Magic Leap raised a $794m series C round led by Alibaba, while Google, mobile semiconductor producer Qualcomm’s corporate venturing arm Qualcomm Ventures, movie studio Legendary Entertainment and media company Warner Bros also took part.
FMR, KKR, Vulcan Capital, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, Obvious Ventures, JP Morgan, Morgan Stanley, Wellington Management and funds and accounts advised by T. Rowe Price also backed the series C round.
Google earlier led a $542m series B round in October 2014 with contributions from Qualcomm Ventures, Legendary Entertainment, KPCB, Andreessen Horowitz, KKR, Vulcan Capital and Obvious Ventures.
Magic Leap had already secured $50m in series A funding from undisclosed investors in February 2014.
Rony Abovitz, founder, president and chief executive of Magic Leap, said: “We are excited to welcome Temasek and the other new investors in this round to the Magic Leap family.
“We also greatly appreciate the strong support and partnership from our existing shareholders.”