BEIJING, Jan. 5, 2021 /PRNewswire/ -- iQIYI Inc.
(NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative
market-leading online entertainment service in China, today announced that it has recently
completed a multi-hundred million RMB Series B funding round
for its virtual reality (VR) division iQIYI Intelligent. The round
of funding was led by Yitang
Changhou Fund and Fresh Capital, setting the record for the
largest single round of funding in China's VR industry in 2020.
The capital raised will be used to fund the research and
development of key VR technologies, algorithms and products as well
as continued investment in the Company's VR content ecosystem.
In addition, global shipments of AR/VR headsets are expected to
hit 7.1 million in 2020, according to IDC's Worldwide Quarterly
Augmented and Virtual Reality Headset Tracker released in March.
IDC expects the shipments to rise to 76.7 million units in
2024, resulting in a compound annual growth rate (CAGR) of
81.5%.
Goldman Sachs predicts that by 2025, the VR/AR market revenue
will exceed USD 80 billion (comprised
of USD 45 billion of hardware revenue
and USD 35 billion of software
revenue). From a global perspective, VR/AR represents a major
opportunity to win the battle for the next-generation mobile
computing platform.
iQIYI Intelligent, an independently operated VR startup iQIYI
incubated in-house, began developing VR products in 2016 with a
focus on "hardware + technology + content". Since then, iQIYI
Intelligent has launched Qiyu, the world's first and only
all-in-one VR headset featuring a 4K
ultra-high-definition screen, and Qiyu 2, the world's first
4K VR all-in-one headset supporting
8K panoramic video playback, as well
as the iQUT future cinema based on VR platform, which set a film
viewing benchmark in the VR industry.
In March 2020, iQIYI Intelligent
launched the Qiyu 2Pro 6DoF VR somatosensory game console, which
features the immersive 6 degrees of freedom (6DoF) head-hand
interaction technology and provides users with a 3D gaming
experience. This device is top-ranking in China in terms of interactivity and
user-friendliness and is on par with other leading VR headsets
produced by global tech companies.
During China's Double 11
Shopping Festival in 2020, iQIYI Intelligent launched a "VR
Discount Storm" which removed the barriers to entry for potential
users by providing cash subsidies, an initiative that was met with
an enthusiastic response. The official sales data showed that from
November 1 to November 11, Qiyu VR
was the top brand both in terms of total sales volume and number of
sales for VR all-in-one headset on JD.com, with an increase of 71%
year-on-year. Furthermore, iQIYI's Qiyi VR occupied three of the
top five spots for best-selling VR all-in-one headsets and other
similar products.
"After this round of funding, we will remain committed to our
strategic goal of being a pioneer and leader of China's new VR entertainment ecosystem," said
Xiong Wen, CEO of iQIYI Intelligent.
"We will increase our investment in independent technological
innovation to create an excellent VR product and our
technology will usher in the next generation of computing
platforms."
At the Qiyu VR Technology Launch Conference scheduled to be held
in a few days, iQIYI Intelligent plans to officially announce the
launch of China's first CV 6DoF VR
interaction scheme and its next-generation headset Qiyu 3. During
the event, the company will also be launching a global VR developer
recruitment program.
"The speed of China's 5G
rollout is unrivaled worldwide and as a key area of focus in the 5G
era, the VR industry is expected to witness accelerated growth. As
an investor in the innovative display hardware technology space,
Changhou Fund has rich industry experience and resources across the
industry chain and we are extremely excited about the tremendous
opportunities in the VR sector," said Wan
Rong, Chairman & President of Yitang Changhou Fund. "As the leading VR
player in China and backed by
iQIYI's huge content library, and with a core team that boasts
extensive expertise both in Internet and hardware industries, iQIYI
Intelligent has laid a solid foundation in key VR technology,
product development and content resources. We hope that the
Changhou Fund and iQIYI Intelligent partnership will unleash
industry synergy to jointly build a new display industry
ecosystem."
"Fresh Capital firmly believes that technology and innovation
are the forces that are driving the evolution of the consumer
industry and allowing people to live better lifestyles," said
Steven Hu, Partner at Fresh Capital.
"We focus on investing in the consumer technology sector as we
value innovation and creativity. Among all the new-generation
entertainment devices, we believe VR/AR undoubtedly offers the most
compelling opportunities. As iQIYI Intelligent perfectly fits our
philosophy and investment logic, we hope that our partnership will
create quality products, content, and services, ushering in a new
VR ecosystem and delivering values and surprises to the industry
and users alike."
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SOURCE iQIYI