Virtual reality developer XR Games has secured a $2.6 million seed investment from Australian venture capital firm Global Merces.
This is the second round of seed investment, having been supplemented in an earlier round by angel investor Nigel Douthwaite. The new funds will be channelled towards senior management, expansion of design, art and development teams, and acquisitions of new IPs.
"We're excited to invest in Bobby Thandi and the team at XR Games," said Global Merces chief investment officer Adam Schoff.
"Their business plan for generating revenues in the VR space really stood out to us, and they have an undeniable pedigree of making games for world famous IPs that are enjoyed by millions of players. I'm looking forward to supporting the team as a director."
The studio, which makes licensed titles, was co-founded by CEO Bobby Thandi who assembled the launch team in 2017. They worked together previously at parent company Dubit on projects for DreamWorks, Mattel, Disney, BBC, and PBS Kids, among others.
"Welcoming Adam's experience and strategic insight to the XR Games board is awesome news," said Thandi.
"Soon we'll announce fantastic new additions to our team, well-known names in the gaming world attracted by the trust and investment from Global Merces. This strong XR team will design and develop mobile and arcade VR games that we'd love to play ourselves and that are true to our partners' much-loved IPs."