Augmented reality is a trending industry to invest in. Many companies are raising money to invest in this new technology. Blippar was one of the most well-known companies focusing on augmented reality. In a stunning announcement, the CEO of Blippar said that the company is going out of business.
Blippar raised millions of dollars from investors. However, internal issues caused the company to fail. Many people from the leadership team at Blippar plan to go work at other companies focusing on augmented reality.
App
Blippar developed one of the first apps that customers could use with augmented reality. For example, a person interested in purchasing a vehicle could hold up their phone near a car. Blippar would automatically provide relevant information to the person with the app. Many clients enjoyed using the Blippar app in various aspects of their daily lives.
Debt
Even though Blippar raised millions of dollars in funding from investors, the company had to spend all of that funding on research and development. As a result, the company had little money for other expenses. Over time, the company started borrowing more money. According to Tech Crunch, the debt levels at Blippar eventually became so high that the company had to fire workers.
Once dozens of workers were fired, the most talented employees started looking for jobs at other companies. Blippar was never able to recover, and the company recently announced that all employees were given severance packages after the business closed.
Other Options
The former CEO at Blippar genuinely believes in the benefits of augmented reality. He plans to start consulting with other companies in the industry. Even though he failed at Blippar, he still has a ton of knowledge that can be used by other companies.
Even though augmented reality is a promising technological trend, industry experts believe that monetizing the technology will be difficult.
Dil Bole Oberoi
