Funding round
Magic Leap Series C
Magic Leap, which works in augmented reality device manufacturing in Plantation, raised $794M in a Series C round announced on 2 Feb 2016, led by Alibaba Group, at a $4.50B post-money valuation. 16 firms took part, 9 of them already investors. It is Magic Leap's second venture round on record; the one before was a Series B in Oct 2014.
$794M
Amount raised
$4.50B
Post-money valuation
$3.71B pre-money
16
Investors
1 lead
2.3x
Step-up from the Series B
$2.00B in Oct 2014
18%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Magic Leap at $4.50B after the new money, 2.3 times the $2.00B of its Series B (Oct 2014). The $794M bought investors about 18% of the company. It came 16 months after Magic Leap's Series B. It is 30% of the $2.62B Magic Leap has raised in the venture rounds on record. Magic Leap raised again 20 months later: a Series D round of $502M in Oct 2017. Its next priced round, a Growth in Apr 2019, valued it at $6.40B.
Magic Leap's funding rounds
Magic Leap has 5 venture rounds on record. This one is highlighted.
Investors
Who put money in
Alibaba Group led the round with 15 other firms. Alibaba Group, GV, Qualcomm Ventures and Legendary Entertainment and 5 more had backed Magic Leap before.
Lead investor
- Alibaba Group existing investor
Also in the round
- GV backs 428 venture-backed companies existing investor
- Qualcomm Ventures backs 140 venture-backed companies existing investor
- Warner Bros. new investor
- Fidelity Investments new investor
- J.P. Morgan new investor
- Morgan Stanley backs 120 venture-backed companies new investor
- T. Rowe Price new investor
- Wellington Management new investor
- Legendary Entertainment existing investor
- KKR backs 104 venture-backed companies existing investor
- backs 31 venture-backed companies existing investor
- Kleiner Perkins backs 285 venture-backed companies existing investor
- Andreessen Horowitz backs 722 venture-backed companies existing investor
- backs 77 venture-backed companies existing investor
- Fidelity Management and Research Company new investor
Joined the board: Joe Tsai (Alibaba Group).
Use of proceeds
What the money is for
According to the announcement, the money goes to product development, geographic expansion, scaling operations and working capital.
- Product development
- Geographic expansion
- Scaling operations
- Working capital
Comparable rounds
How it compares
109 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $25M, and this round was 32 times the median. The closest in time, other companies' Series C rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tech Companies | 16 Feb 2016 | $55M | $300M | Lightspeed Venture Partners |
| Tech Companies | 25 Feb 2016 | $35M | not disclosed | Tenaya Capital |
| Tech Companies | 1 Feb 2016 | $14M | not disclosed | NGP Capital |
| Tech Companies | 15 Feb 2016 | $8.0M | not disclosed | Egis Capital Partners |
| Tech Companies | 22 Jan 2016 | $50M | not disclosed | HarbourVest |
| EGYM Tech Companies | 21 Mar 2016 | $45M | not disclosed | HPE Growth |
| Tech Companies | 26 Jan 2016 | $35M | not disclosed | Battery Ventures |
| Tech Companies | 6 Jan 2016 | $33M | $134M | not named |
Sources
Where this comes from
Reported by 6 sources.
Questions
Frequently asked
How much did Magic Leap raise in its Series C round?
Magic Leap raised $794M in its Series C round, announced in Feb 2016.
Who led Magic Leap's Series C round?
Alibaba Group led it, with GV, Qualcomm Ventures, Warner Bros., Fidelity Investments and J.P. Morgan and 10 more.
What was Magic Leap's valuation at the Series C round?
$4.50B post-money ($3.71B pre-money).
How does it compare with other Series C rounds in Tech Companies?
109 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $25M, and this round was 32 times the median.
Did Magic Leap raise again after this round?
Yes: a Series D round in Oct 2017 of $502M.