Virtual reality provider ARena Space has attracted investments of USD7.7 million from the processing company Rucard. The deal was structured by a venture fund IP Fund.
Financing will be directed primarily to the development of the company in the international market. In particular, ARena Space will open its branch in Amsterdam.
The money also will be spent on the development of VR and AR products for the mass market, the creation of a fund for developers of virtual and augmented reality content and a network of new-generation VR parks in Europe and the USA. The company is already in intensive discussions with leading European shopping centres and plans to open its first locations abroad by the end of 2018.
Opening an office in Europe is the first step of ARena Space in expanding the geography of its presence. By the end of the next year, the company founders are going to increase the audience of their parks to 1 million customers. And they intend to open 150 VR-parks and become the largest player in this market in the world by 2021.
“Unlike competitors who offer mono-products and small locations, we present a park that integrates the best technologies, attractions and content. Our ideal modular park includes up to 10 different zones, focused on different target audiences, and occupies from 100 to 1000 sq m depending on location and type of intake. Another key advantage is the personalisation of content for the profile of each client. And the third point that I would like to note is the APM park management software, which connects all the business processes of the park into a single interface – from customer personalisation to management reporting, integrates content launch through a single API and will be able to recognise visitors by face in the nearest future,” says Andrey Taburinsky, co-founder of ARena Space.
The ARena project appeared in 2016 and at the moment is a group of companies that create a full cycle of production and services. The company has its own RnD-lab, which develops VR/AR content, such as SKALA (interactive climbing wall), Full Immersion VR (Free Roam VR System), VR Robot Simulator, interactive avatar.
Since its inception, the ARena group has attracted investments of more than RUB20 million. Vasily Ryzhonkov, the founder, invested more than RUB3 million from his own funds in 2016, and Aleksey Mekhonoshin, the former vice-president of Sberbank, became the first seed investor. In total, he gave about 450 thousand dollars for the development of the project.
“The key specialists of the company stood at the origins of the virtual and augmented reality market. From 2016, we have made numerous mistakes, of course, and have had our ups and downs. As a result, our unique path has led us to who we are now: the creators and providers of the most technologically advanced VR/AR solutions in Russia with the prospects of entering Europe and the USA. In five years we will open 250 locations and become the largest network of virtual reality parks. More than 10 million people will immerse into the VR/AR worlds with the help of ARena Space,” says Vasily Ryzhonkov.
According to the founders of the project, the creation of one square meter of VR-park costs about USD1000. Now the network consists of seven parks in three cities of Russia, where one can witness the most advanced technologies and solutions, unique exciting content and formats of games and attractions. In addition, in the beginning of November ARena Space announces the opening of the largest virtual reality park in Eastern Europe – 620 sq m in the Central Children’s Store in Moscow.
ARena’s income consists of cash expenditures of park visitors, selling franchises and selling its own products. The planned revenue in 2018 will be RUB40 million.
