Is virtual reality a bubble? That’s a common question in a number of panels I’ve covered in the past year. The answer isn’t quite knowable until a major event comes along that either expands or pops the bubble. Digi-Capital reported that venture capitalists invested $500 million in augmented reality and VR during the third quarter, with 65 percent of that money coming from mainstream traditional VCs. At that rate, VR is consuming a measurable part of VC investments in the world. Digi-Capital estimates AR and VR could be a $120 billion business by 2020.

To get some insight into those numbers, I moderated a panel on investing in virtual reality and augmented reality at Greenlight Insights’ recent Virtual Reality Strategy conference in San Francisco.

The panel included Toby Zhang, cofounder of the Youku Global Media Fund, a joint early stage venture fund between CRCM and Youku. It focuses on media, AR/VR, and A.I. Our second speaker was Marco DeMiroz, partner at the $50 million Venture Reality Fund, which focuses on VR, augmented reality, and mixed reality. And it also included Michael Yang, managing director at Comcast Ventures in the Bay Area. Read More