Magic Leap wins $794M investment led by Alibaba
Magic Leap, Inc. announced $793.5 million in new funding Tuesday, bringing to $1.4 billion its total funding for a secretive reality simulation product under development.
The investment round, led by Chinese e-commerce company Alibaba Group, also includes Google, which ledMagic Leap’s $542 million funding in 2014— the largest venture funding in Florida that year. QualcommVentures also is participating in both rounds of funding.
Newinvestors includeWarner Bros., FidelityManagement and Research Co., JPMorgan Chase& Co. andMorgan Stanley InvestmentManagement, Magic Leap said.
The Alibaba-led investment will more quickly bringMagic Leap’s product, nowcalled “Mixed Reality Lightfield,” to themarket, said Rony Abovitz, founder and chief executive ofMagic Leap.
“We are excited towelcome Alibaba as a strategic partner,” he said.
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Magic Leap, which recently opened a new headquarters in Plantation, is developing a virtual reality platform. The company describes itswork as “a new mixed reality computing platform that will enable people to interact with theworld inways never before possible.”
The company has applied for nearly 100 patents that give clues to its potential products: a compact scannable technology, a method for surgery using augmented reality, a method for modifying a sporting event, a system for generating virtual rooms and many more.
Alibaba’s executive vice chairman, Joe Tsai, said Alibaba can both lend support and learn from Magic Leap. “We invest in forwardthinking, innovative companies like Magic Leap,” said Tsai, who will take a seat on the company’s board, joining GoogleCEO Sundar Pichai.
Magic Leap, which employs 217 people inDania Beach and Plantation, was founded by Abovitz after he helped develop robotic surgical companyMako Surgical inDavie, which later sold to Stryker Corp. for $1.65 billion.
Local and state governments are betting big onMagic Leap’s success, approving last year $9 million in economic incentives to create 725 jobs with an average salary of $100,000 by 2020. Broward County approved its $1.08 million share of the incentives inNovember. The city of Plantationwould provide more than $1 million.
The statewould pay $4 million to the company aswell as $3million fromGov. Rick Scott’s discretionary Quick Action Closing fund used to close deals.
Florida, Broward County and Plantationwere potentially competing withMagic Leap’s other locations, which include Santa Cruz, Los Angeles andMountain View, Calif.; Seattle; Austin, Texas; theUnited Kingdom; andNew Zealand.
mpounds@tribpub.com