HTC Spins Off Vive VR Business And Creates $10 Billion VR Venture Capital Alliance
HTC has major plans for the VR industry. The company announced that it has created a wholly-owned subsidiary, HTC Vive Tech Corporation, and that it is leading the development of the VR Venture Capital Alliance. All of these plans were announced at the GSMA Mobile World Congress in Shanghai.
HTC stated, “HTC can confirm that it has established a wholly-owned subsidiary, HTC Vive Tech Corporation, as a vehicle for developing strategic alliances to help build the global VR ecosystem.” Although this company remains under HTC’s control, potential HTC Vive deals will be made separate from the larger HTC company.
Some have argued that HTC smartphone business is failing and that it is trying to separate their successful VR business from the rest of the weakened company. Developers and manufacturers are more likely to sign contracts with a business tied only to the risks and costs associated with the Vive’s performance instead of HTC as a whole. There had been predictions that Vive would make HTC more profitable, however, it appears to HTC does not want to take that chance.
The VR Venture Capital Alliance is an $10 billion USD investment to help support the development of VR. There will be a total of twenty seven firms which include several VR companies as well as more diverse companies such as Sequoia Capital and Redpoint Ventures. It will be led by Alvin Wang Graylin, China Regional President of VR at HTC.
The VRVCA will meet six times a year in San Francisco and Beijing in order to hear from companies hoping to raise some funds to power their ideas. The conglomerate stated, “We are not searching for the next technology revolution because it is already here. We are searching for the next entrepreneur to lead it.”
VR startup who are looking for funding can submit their application to VRVCA here.