Presence Capital

Presence Capital Research

Investment Thesis

Presence Capital is one of the earliest venture funds formed exclusively to invest in virtual reality (VR) and augmented reality (AR) companies. Founded in 2015, the firm was established by a team with exceptionally deep operating experience in immersive technologies. The fund believes that VR and AR are transformative technologies that will reshape entertainment, enterprise, healthcare, and consumer experiences. Rather than generic software investing, Presence Capital brings founder and operator lens tightly coupled to immersive tech, with founders who have built iconic products like FarmVille at Zynga, engineered the Unreal Engine and Gears of War, and led HTC's VR initiative.

The fund's thesis emphasizes early-stage, high-potential companies creating novel experiences and tools in the VR/AR ecosystem. They focus on companies building platforms, applications, content, and enabling infrastructure for immersive technology adoption.

Stage Focus

Presence Capital primarily invests at the seed and early Series stages:

• Seed: $1M-$3M range (17 investments to date)
• Series A: $5M-$8M range (7 investments)
• Series B: Higher amounts for portfolio follow-ons (2 investments)

The fund typically leads or co-leads rounds and prefers to be an early institutional investor in promising teams.

Check Size

Typical investment range: $25,000 - $100,000 based on firm data

• Seed rounds: Average $2.21M (fund participating check estimated $250K-$500K)
• Series A rounds: Average $5.36M (fund participating check $1M-$2M)
• Series B rounds: Average $22M (selective follow-on participation)

Lead Tendency

Presence Capital follows on more than it leads, showing selective lead participation in seed rounds. They are active co-investors and frequently syndicate with other experienced VR/AR funds like The Venture Reality Fund.

Recent Activity

The fund has been consistently active in deploying capital:

• 2021: Led Series B investment in Thirdverse (Tokyo-based VR game developer) at $7.45M, Series A in Thirdverse at $2.98M
• 2018: Participated in Seed round in Loom.ai (acquired by Roblox) at $3.03M
• 2017: Series B in Fyusion (3D image capture) at $2.38M, Series A in Lightform (AR projection) at $3.3M
• Last known activity: August 2021 with Thirdverse follow-on
• Fund status: Actively deploying but recent investment pace has slowed (no 2026 investments recorded as of latest data)

Portfolio Highlights

Notable Exits (12 acquisitions total):

• Harmonix (acquired Nov 2021) - Music gaming and VR experiences, iconic Rock Band franchise
• Loom.ai (acquired by Roblox, 2018) - VR avatar creation technology
• Limbix (acquired Jul 2023) - VR therapy for behavioral health
• Fyusion (acquired Jan 2021) - 3D image capture technology
• Byte (acquired Jan 2021) - VR content platform
• Immersal (acquired Jul 2021) - AR cloud mapping

Active Portfolio (47 companies, 9 still active from acquisition base):

• Varjo (Series D, $149M total funding) - Enterprise VR headsets for professional use (architecture, design, training)
• TRIPP (Series A, $26.3M funding) - VR wellness and mental health experiences combining audio, visuals, gameplay, and meditation
• Resolution Games (Series C, $38.5M funding) - VR gaming studio with casual game focus, multiple titles across platforms
• Baobab Studios (Series B, $31M funding) - Interactive animated films and VR content, franchiseable family IP
• Simbe Robotics - Enterprise robotics with VR applications
• Thirdverse - Tokyo-based VR game developer
• Osso VR - VR medical training
• Bigscreen - Social VR platform
• Limbix (pre-acquisition) - VR behavioral health therapy

Portfolio Composition:

• High Tech companies: 21 investments
• Enterprise Applications: 8 investments
• Gaming: 4 investments
• AR/VR Industry Applications: 5 investments
• Consumer: 5 investments
• Other: 21 investments across various sectors

Team

Partners (3 total):

1. Amitt Mahajan, Managing Partner (San Francisco)

   • Current: Managing Partner at Presence Capital
   • Background: Deep operational and investing experience in VR/AR
   • Role: Lead investor relations and portfolio support

2. Paul Bragiel, Founding Partner (San Francisco)

   • Background: Co-founder of Presence Capital, gaming industry veteran
   • Expertise: Game development, founder operations, VR content strategy
   • Contact: 2 emails on file

3. Phil Chen, Founding Partner (Hong Kong)

   • Background: Co-founder of Presence Capital, HTC VR initiative veteran
   • Expertise: Hardware integration, enterprise VR applications, APAC expansion
   • Contact: 2 emails on file
   • Location: Based in Hong Kong, enabling APAC network and sourcing

Team Characteristics:

• Highly specialized in VR/AR with founder and operator experience
• Global network with US (SF) and APAC (Hong Kong) presence
• Strong domain expertise in entertainment/gaming, enterprise applications, and healthcare VR
• Hands-on operational support for founders

Decision Process

Based on portfolio data and fund structure, Presence Capital operates as a partnership with clear founder/operator alignment:

• Solo decision maker: Individual partners can lead investments
• Typical involvement: Board seat or observer status
• Thesis-driven sourcing: Highly specific to VR/AR sector
• Network-based deal flow: Strong relationships within VR/AR and gaming communities

Geographic Focus

Primarily United States with selective international expansion:

• United States: 22 investments (Los Angeles, San Francisco, Boston)
• Finland: 2 investments (Helsinki-based companies like Varjo)
• Japan: 1 investment (Thirdverse)
• France: 1 investment
• Emerging focus: Hong Kong-based partner (Phil Chen) enables APAC opportunities

Founder Preferences

Presence Capital seeks founders with:

• Deep domain expertise in gaming, entertainment, or enterprise VR/AR
• Shipped products or prototype-stage with clear vision
• Technical founders or experienced operating teams
• Global mindset - comfortable with international markets and distributed teams
• Capital efficiency - ability to reach milestones on modest seed funding
• Founder-operator mentality - hands-on building and iterating

Anti-thesis:

• Pure B2C consumer VR (without platform partnership potential)
• Hardware-only plays (unless deeply integrated with software)
• Enterprise plays without clear ROI pathway

Sector and Technology Preferences

Primary Sectors:

• Gaming (VR games, game development tools)
• Enterprise VR (training, simulation, design tools)
• Healthcare VR (therapy, medical training, diagnostics)
• VR/AR Content and Experiences (interactive media, education)
• VR/AR Infrastructure (mapping, avatar tech, development tools)

Technology Stack:

• Game engines (Unreal Engine, Unity expertise from team backgrounds)
• Spatial computing and AR cloud technologies
• Avatar and social VR technologies
• Medical device regulation expertise (healthcare VR)
• Enterprise software integration

Co-Investor Network

Frequent co-investors (205 total investors across portfolio):

• The Venture Reality Fund (6 co-investments) - Closest aligned investor
• Y Combinator (early-stage companies)
• Creandum, GP Bullhound (European VR investors)
• Samsung Venture Investment (hardware ecosystem alignment)
• JAFCO Group (Japanese expansion)
• Business Finland (Nordic tech support)

Competitive Position

Presence Capital is positioned as:

• One of the earliest VR/AR-exclusive venture funds (founded 2015)
• Highly specialized vs. generalist firms
• Well-networked within VR/AR ecosystem
• Experienced in navigating hardware platform dependencies (Oculus, HTC, etc.)
• Strong portfolio of exits validating thesis
• Selective deployment due to team size and focus

Market Context

The VR/AR market has evolved significantly since fund founding:

• Hardware adoption has accelerated with Meta Quest dominance and Apple Vision Pro
• Enterprise VR adoption increasing post-COVID
• VR healthcare applications gaining regulatory and clinical validation
• Gaming remains largest category by revenue
• Market consolidation (multiple portfolio acquisitions)

Presence Capital's $10M first fund size reflects the nascent VR market of 2015. The fund has maintained focus despite market cycles, with selective investments in proven founders and company types.