Magic Leap has secured $350 million in a new investment round as it tries to secure the future of the company.
The financing was announced in an internal email to staff by CEO Rony Abovitz. The round included both current and new investors, Abovitz said.
The company is working on its next headset, Magic Leap 2, but has made a shift to the enterprise market.
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Having recently laid off around half the company, Magic Leap has just secured $350 million in financing as the augmented reality company tries to pave a way forward.
In a letter sent to employees, and seen by Business Insider, Magic Leap CEO Rony Abovitz said that the financing was led “by current major investors in Magic Leap, as well as new investors.”
It’s not clear who the investors are, but Magic Leap has attracted stakes from major names including Google, Alibaba, AT&T, and Warner Japanese telecom giant NTT Docomo in the past.
The Information recently reported that Magic Leap had turned to a major health care company for investment, possibly Zimmer Biomet, but it is unclear if Magic Leap secured that deal for this latest investment round.
In the email to employees, Abovitz also said the company is withdrawing the conditional WARN notice sent to remaining employees on April 22 – a requirement that an employer must provide 60 days of written notice ahead of mass layoff plans.
“We are making very good progress in our healthcare, enterprise, and defense deals. As these deals close, we will be able to announce them,”wrote Abovitz in the email. He also said there are plans to close “possible additional investment” in the coming weeks.
Here’s the letter in full:
“Dear Magic Leapers,
I am very happy to report today that we have secured financing for Magic Leap – and that we have closed the first phase of that investment and commitment today. The $350mm investment is led by current major investors in Magic Leap, as well as new investors. We are also working on closing possible additional investment in the coming weeks.
Closing a financing such as this during the current difficult economic environment is a significant show of belief in our spatial computing mission, vision, and technology. This is also a show of belief in our team’s ability to deliver on our upcoming enterprise market mission, including the deep focus on Magic Leap 2.
Today, as we have secured financing, we are also formally withdrawing the conditional WARN notice that was sent to you on April 22, 2020, otherwise there are no changes to the terms of employment and we look forward to continuing normal operations.
We are making very good progress in our healthcare, enterprise, and defense deals. As these deals close, we will be able to announce them.
I want to thank you all of you for your indomitable spirit and for continuing to support each other and our company.
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Source:: Business Insider