Facebook founder Mark Zuckerberg threw investors a bone last week.
During a 45-minute podcast, not only did he reveal why Augmented Reality (AR) and Virtual Reality (VR) are the key to Facebook’s future success…
But he tipped off investors about where to look for profit opportunities in these sectors.
So today, I’ll give you a quick summary of his podcast…
And then I’ll share three AR/VR investments you can make today.
A New Battle — Bigger than Smartphones
Zuckerberg doesn’t care for media interviews. He tends to get tense and sweaty when put on the spot.
But VR and AR are so important to the future of Facebook, he’s willing to do almost anything to get his story out there.
For example, last week, he did a podcast interview for a newsletter called “Reality Check,” which is devoted entirely to AR and VR.
Why is there a whole newsletter focused on AR and VR? And why is this topic relevant to investors like you? Well, as the editors of Reality Check explain:
“The coming war between Apple, Facebook, Google, Microsoft and many, many others will make the battles we saw over smartphones seem like a minor skirmish. And the technology has the potential to change our lives more than any technology platform before.”
Bigger and more important than smartphones? OK, that’s worthy of a newsletter — and as a trend, it’s certainly worthy of your investment.
Don’t Speak the Name of Your Enemy
Throughout the interview, Zuckerberg kept referring to Apple in unflattering terms.
That’s not surprising. The two companies have been battling lately over everything from Apple’s App Store, to consumer privacy.
But they both seem to agree that AR and VR could become “the next big thing.”
Apple is busy at work developing a VR/AR headset.
And Facebook is currently working with Ray-Ban on a pair of “smart glasses” that are due to be released this year.
How Big Can This Get?
Seven years ago, Facebook paid $2 billion to buy a VR company called Oculus.
At the time, it seemed like a preposterous sum. But given the potential for VR/AR, $2 billion might turn out to be a drop in the bucket.
As Zuck explained:
“I think over time the opportunities are enormous… I think it’ll get to many tens of millions [of devices and users], like what you’ve seen with Xbox and PlayStation just on the gaming side.”
These are big numbers he’s talking about. The PlayStation has sold over 100 million units. And Zuckerberg believes the figure could potentially reach a similar level as smartphones, which means hundreds of millions of units, if not billions.
What will it take to reach such numbers?
Well, for starters, such devices need to be affordable.
And secondly, they need to be easy to use and comfortable to wear — as Zuck clarified, nobody will want “to get their head drilled open in order to use [VR or AR.]”
Three Opportunities to Explore Today
You could invest in Facebook or Apple to get exposure to this emerging trend. But that wouldn’t maximize your profit potential.
Those are huge companies. They’re already worth hundreds of billions or trillions of dollars. They’re not going to 10x from here because of VR/AR.
Instead, you should consider investing in startups that are laser-focused on this sector. Here are a few you can invest in today for as little as $100:
- AEXLAB is a gaming company creating immersive, VR-based experiences. Its content can be played using almost any VR headset.
- MyndVR is a VR platform for seniors. It’s designed to reduce anxiety and depression, and stimulate memory and cognition. It’s already raised millions from notable investors, and has been featured in Forbes and CNN.
- Virtuix. Backed by Mark Cuban and a dozen venture firms, Virtuix’s Omni device lets players walk and run in 360 degrees inside VR games. The company has already sold more than $10 million worth of its products.
Keep in mind:
I’m not recommending that you go and blindly invest in these startups.
These are early-stage ventures, so you need to do substantial research before making an investment decision.
But if you’re interested in a trend that could be bigger than smartphones, these are a great place to start your search!
Please note: Crowdability has no relationship with any of the startups we write about. We’re an independent provider of education and research on startups and alternative investments.