Social VR App AltspaceVR is Shutting Down Due to Fund Crunch

Prayank

AltspaceVR, a Virtual Reality social networking app, which was founded in 2013 and received a funding of $15.7 million has now run out of money and will be shutting down its services on August 3, 2017, the company announced.

AltspaceVR is used by over 35,000 users in 150 countries but their last funding round didn’t yield any fruits and its seems like they’ve burnt the last of their funds received in 2015.

What started as a promising new social network encircling a developing technology will soon be turned to ashes.

“The company has run into unforeseen financial difficulty and we can’t afford to keep the virtual lights on anymore. This is surprising, disappointing, and frustrating for every one of us who have put our passion and our hopes into AltspaceVR. We know it will probably feel similarly for you,” the company stated.

The venture-backed startup failed to keep up the momentum going for their company due to the general slowness in the VR market and the reluctance of most of their investors to fund the further in such a scenario.

AltspaceVR had started seeing a growth in users as well as usage. On an average, their users spend about 35 minutes on the platform and they were also actively engaged with several organisers for VR events.

“We’ve been out fundraising but have run out of time and money. We’d love to see this technology, if not the company, live on in some way, and we’re working on that,” the company added.

Users can save their existing photos and friends list by going to https://account.altvr.com/events and saving the entire webpage including friends and photos.

The company is hosting a farewell party online for Altspace VR on August 3, 7 pm (PDT), following which the service will be shut down for good.

“We are all humbled by what you made of this virtual oasis. Thank you for spending your time building, hosting, and making the best community we could have wished for,” AltspaceVR stated.

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Prayank

Bike enthusiast, traveller, ManUtd follower, army brat, word-smith; Delhi University, Asian College of Journalism, Cardiff University alumnus; a journalist breathing tech these days.