Augmented Reality is no longer a futuristic concept – it’s a transformative technology revolutionizing industries worldwide. The rise of funded augmented reality startups signals the tech world’s growing confidence in AR’s potential to redefine how we interact with our surroundings.
The global AR market is experiencing exponential growth, projected to reach a staggering $97.76 billion by 2028, with a compound annual growth rate (CAGR) of 25.3%.
This boom is fueled by advancements in hardware, increased adoption of 5G, and growing investments from venture capitalists. One of the key reasons for AR’s popularity is its versatility. It seamlessly integrates with industries like gaming, education, retail, and healthcare, offering solutions that enhance user engagement.
As AR adoption continues to accelerate, funded startups are leading the charge, shaping the technology’s future and expanding its reach.
In this blog, we are going to explore five such startups that have brought their own essence to the industry!
Our picks: Top 5 funded augmented reality startups of 2025
1. Varjo
Based in Finland, Varjo is one of the top funded AR startups that has revolutionized virtual and augmented reality with its industry-leading technology focused on professional applications. The company’s success lies in its ability to bridge the gap between consumer-grade VR and professional-grade VR solutions.
By offering groundbreaking human-eye resolution in VR headsets, Varjo has attracted industries like aerospace, automotive, and architecture. Their Series D funding round in November 2024 signals confidence from investors in Varjo’s continued ability to innovate and dominate the professional AR/VR space.
| Metric | Detail |
|---|---|
| Website | www.varjo.com |
| Headquarters | Finland |
| Focus Areas | Virtual Reality, Augmented Reality |
| Funding Stage | Series D |
| Total Funding | $144M (estimated as of November 2024) |
2. Rokid
Another name on our list of best augmented reality startups with investment is Rokid. Rokid, a U.S.-based company, stands out for its convergence of AI, augmented reality, and wearables. By combining AI-powered voice interaction with AR smart glasses, Rokid offers innovative solutions for enterprise and consumer markets.
Their flexibility in pivoting towards enterprise applications, such as warehouse logistics and remote assistance, has been a key factor in their growth. Securing over $14 million in funding by October 2024 highlights investor belief in their adaptability and technological advancements.
Rokid integrates AI, AR, and wearables to develop solutions for consumer and enterprise markets.
| Metric | Detail |
|---|---|
| Website | rokid.ai |
| Headquarters | United States |
| Focus Areas | Artificial Intelligence, Augmented Reality, Wearables |
| Funding Stage | Venture - Series Unknown |
| Total Funding | $14,260,046 (as of October 2024) |
3. SOMAREALITY
Headquartered in Austria, SOMAREALITY focuses on blending augmented and virtual reality for immersive experiences. Despite being in the seed stage, the startup has garnered attention for its potential in sectors like education, training, and entertainment.
By leveraging a strong R&D focus and forming partnerships with academic institutions, SOMAREALITY has secured $2.8 million in funding, showing its promise as a major player in the AR/VR ecosystem.
| Metric | Detail |
|---|---|
| Website | somareality.com |
| Headquarters | Austria |
| Focus Areas | Augmented Reality, Virtual Reality |
| Funding Stage | Seed |
| Total Funding | $3.37M (as of December 2024) |
4. MEMGPT
MEMGPT, a U.S.-based startup, integrates memory-enhanced generative AI with augmented reality to revolutionize industries like healthcare, education, and enterprise collaboration. Its standout feature lies in its context-aware AI, capable of retaining and recalling relevant information over extended interactions, which sets it apart from traditional generative models.
Backed by $7.5 million in Series A funding, MEMGPT is scaling its R&D efforts and solidifying its position as a disruptor in AI and AR.
| Metric | Detail |
|---|---|
| Website | memgpt.com |
| Headquarters | United States |
| Focus Areas | Generative AI, Augmented Reality |
| Funding Stage | Series A |
| Total Funding | $7,500,000 (as of November 2024) |
5. Mawari
Mawari, is another one of AR businesses receiving venture funding in 2024. Headquartered in Japan, specializes in 3D content streaming technology for AR/VR applications, enabling seamless, high-quality content delivery over low-bandwidth networks. Its cloud-based rendering system, which shifts computation away from end-user devices, and edge computing capabilities ensure low latency and high performance, solving key adoption challenges for AR/VR.
Mawari’s success stems from its infrastructure-level focus, which positions it as a critical enabler for the metaverse, along with strategic collaborations with telecom and cloud providers to enhance scalability and global reach. With $10.8 million in seed funding, Mawari is expanding its cutting-edge solutions to redefine immersive experiences.
| Metric | Detail |
|---|---|
| Website | mawari.com |
| Headquarters | Japan |
| Focus Areas | 3D Streaming, Augmented Reality, Virtual Reality |
| Funding Stage | Seed |
| Total Funding | $10.8M (as of November 2024) |
Want to kickstart your own augmented reality startup? Let our experts help you develop your MVP!
How do AR startups attract investors?
Augmented Reality (AR) startups attract investors by demonstrating their potential to deliver innovative solutions, tap into emerging markets, and generate high returns. Here’s a breakdown of the key strategies funded augmented reality startups use to secure investor interest:
- Unique Innovation: Startups stand out by offering proprietary technology or blending AR with AI or other advanced tools (e.g., MEMGPT’s AI-enhanced AR). This differentiation ensures a competitive edge.
- High-Growth Market Potential: The AR market’s projected growth (CAGR >25%) attracts investors, especially in sectors like enterprise training tools, gaming, and retail applications.
- Traction and Metrics: Startups showing user adoption, revenue growth, or partnerships (e.g., collaborations with telecoms or cloud providers) give investors confidence in their scalability.
- Experienced Teams and Vision: Founders with industry expertise and a clear roadmap inspire trust. A compelling vision for the AR space, aligned with emerging trends like the metaverse, strengthens investor appeal.
- Scalable Business Models: SaaS platforms or cloud-based solutions demonstrate the ability to grow across industries and geographies, promising exponential returns.
How can Clustox help you become the next best funded augmented reality startup?
Clustox can help you become the next best funded augmented reality startup by guiding you through every stage of development. If you have a high-level idea, we begin with a discovery session to validate and refine your concept. From there, we help you create a Minimum Viable Product (MVP) to test and gather feedback before scaling.
As your product evolves, we support you with product design and strategy to ensure a seamless user experience and alignment with business goals.
For businesses looking to scale, our team of AI and ML experts provides the technical support needed to enhance performance and integrate advanced features.
Partnering with Clustox gives you the expertise and resources to turn your AR vision into a market-ready, investor-attracting solution. So, get in touch with us now, and start your journey towards securing a place among the top augmented reality companies with funding