Magic Leap, the US-a-Broadd son-in-the-city start-up, has raised $350m in new capital from existing and new investors, according to an internal email obtained by people familiar with the matter. Despite the surprise financing, it was good news for the company’s employees, who withdrew a layoff notice sent to the rest of the workforce in April, meaning they would be able to keep their jobs.
Including the new funding, Magic Leap has raised $2.95 billion so far. The company’s previous investors include NTT DoCoMo, AT?amp;T, Axel Springer Digital Ventures, Saudi Arabia’s Public Investment Fund, Alibaba, Google and JPMorgan Chase.
Founded in 2011, Magic Leap is headquartered in Florida. The company, an augmented reality platform similar to Microsoft’s Hololens, which focuses on projecting 3D images into human vision, launched the ARMagic Eyeglass Leap One in August 2018 for up to $2,295.
Magic Leap One’s main competitor is Microsoft’s hybrid reality device, HoloLens 2, which has a slightly lower price, but which already has a much larger user base.
In March,media reported that the company had chosen to shift its focus to the business and began looking for buyers for the sale, which could be as high as $10 billion, as sales of AR helmets were flat.
In April, people familiar with the matter said Magic Leap would cut half of its workforce as part of a major restructuring plan that would affect about 1,000 employees. In addition, the company is planning to abandon its consumer business in favor of its corporate products.
Magic Leap said the outbreak was a key reason the company announced job cuts and abandoned its consumer business in April.