Rony Abovitz, CEO of Magic Leap, confirmed that he had started a new round of financing and announced that he would step down as the top executive of the augmented reality company.
In a statement, Abovitz confirmed rumors that the company had started a last-minute round of financing, but did not say where it came from or did not disclose the amount raised. The company is focused on focusing its spatial computing platform on the corporate market. A week ago, information reported that Magic Leap had raised $ 350 million as a lifeline shortly after the company announced it would cut 1,000 jobs and leave the consumer business for its Magic Leap One AR headset, which animated images in the real World overlaid.
In some ways, it is not surprising that Abovitz says he will step down after the company has found a new CEO. Many companies grow out of their founders and Magic Leap has not fulfilled its original vision of changing our world with AR glasses. The company tried to make consumer and corporate products successful at the same time. However, the consumer market rejected Magic Leap's expensive product, which was sold for at least $ 2,000. And large corporate orders did not come about for a technology that still seemed to be in the works.
Magic Leap's plan to focus on the company is probably the right strategy, as companies rely on high-end technology rather than consumers. But there is a lot of competition and it will not be easy to convince customers that Magic Leap will do a miracle after the first try. As with virtual reality companies, Magic Leap may need to squat and prepare for the possibility that the revolution won't happen quickly. The new CEO may have to think about that.
Abovitz is to be welcomed for the vision that the company has brought to its valuation in the billions. But it's probably a good time to find someone who can do business with all this value.
Here is Abovitz's full explanation:
As we've shared in the past few weeks, we've focused on providing a spatial computing platform for businesses to get Magic Leap on the road to success.
We have completed significant new financing and have very positive momentum in signing key strategic business partnerships.
When the board and I planned the changes we made and what Magic Leap needed for this next focused phase, we realized that changing my role was a natural next step. I discussed this with the board and we agreed that now is the time to bring in a new CEO who can help us commercialize our focused business spatial computing plan. We have been actively recruiting candidates for this role and I look forward to sharing more soon.
I have been running 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'm amazed at everything we've built and look forward to everything Magic Leap will do in the coming decades.
I will remain our CEO during the transition and I'm in discussions with the board about how I will continue to deliver strategy and vision at board level. I am still very excited about the future of Magic Leap and I firmly believe in our team and all their incredible talents and skills.
