• by Chuck Martin , Staff Writer, March 16, 2020

Virtual and augmented reality live in a state of future potential.

After cardboard VR viewers and failed consumer AR glasses, the technologies just aren’t catching on.

Even though reaching $4 billion for the year, AR and VR investments dropped in the last quarter of 2019, both in deal volume and deal value, according to the latest tracking by Digi-Capital.

The number of deals declined slightly from the previous quarter, but total investments dropped 27% from a year earlier.

Overall AR and VR dollars declined 35% from 2018 to 2019.

The highest volume of AR and VR deals in the last 12 months were in tech, games, education, smart glasses, medical and enterprise software and solutions.

Tech and social companies dominated deal value, with smart glasses, location-based entertainment and games.

By deal size, investments in the range of $500 million to $1 billion and $100 million to $500 million dominated, with the U.S. and China leading by location, followed by Israel, the U.K. and Canada.

AR and VR keep waiting for their day in the sun.