American augmented reality startup Magic Leap has verified that its CEO Rony Abovitz will be leaving the organization right after he brought in fresh round of investment to the firm.
In a declaration, Mr. Abovitz validated reports that the company had brought in a last-minute round of investment, but did not mention where it came from and how much it was. He added that the startup is shifting focus towards the use of its spatial computing platform on the enterprise market. Earlier this week, reports suggested that Magic Leap had introduced funds worth $350 million as a lifeline, just after the company stated it was slashing 1,000 jobs and leaving the consumer business for its Magic Leap One AR headset, which superimposes animated models on the physical world.
Magic Leap hasn’t achieved its original vision of remodeling the world with AR glasses. The company attempted to make both consumer and enterprise products work at the same time. But the consumer market resisted at Magic Leap’s pricey product which was selling for at least $2,000. And the big enterprise buying didn’t happen for a technology that looked like it was still a work in progress.
Magic Leap’s strategy to focus on the enterprise is apparently the right strategy, as businesses are more inclined to invest in high-end technology than retail consumers. But there’s a lot of opposition and it won’t be simple to persuade consumers that Magic Leap will pull off a marvel after wasting its initial attempt.
Abovitz is to be appreciated for the concept that got the business to its valuation in the billions of dollars.
Here’s Abovitz’s full statement:
As we’ve shared over the last several weeks, in order to set Magic Leap on a course for success, we have pivoted to focus on delivering a spatial computing platform for the enterprise.
We have closed significant new funding and have very positive momentum towards closing key strategic enterprise partnerships.
As the board and I planned the changes we made and what Magic Leap needs for this next focused phase, it became clear to us that a change in my role was a natural next step. I discussed this with the board and we have agreed that now is the time to bring in a new CEO who can help us to commercialize our focused plan for spatial computing in enterprise. We have been actively recruiting candidates for this role and I look forward to sharing more soon.
I have been leading Magic Leap since 2011 (starting in my garage). We have created a new field. A new medium. And together we have defined the future of computing. I am amazed at everything we have built and look forward to everything Magic Leap will create in the decades to come.
I will remain our CEO through the transition and am in discussions with the board with regards to how I will continue to provide strategy and vision from a board level. I remain super excited about Magic Leap’s future and believe deeply in our team and all of their incredible talent and capabilities.