After piloting its technology with the U.S. Air Force, Madison virtual reality startup Holos is now building a platform to help users easily build and sell VR courses for everything from yoga classes to archeology lessons.
The startup is looking to shake up the online courses industry, which includes California-based companies like Udemy Inc. and Coursera Inc. (NYSE: COUR). The no-code Holos platform would allow users to create immersive VR experiences without technical expertise.
Holos recently raised nearly $600,000 in seed funding via a simple agreement for future equity (SAFE) from angel investors including Tundra Angels of Green Bay. It's in the process of raising another $2.5 million in a second seed round that will be priced, or based on the startup's valuation, according to a Holos email update last month.
Ahead of an anticipated public launch at the end of this year or early next year, Holos plans to partner with five initial content creators to build 3D experiences on the Holos platform, the email stated.
The technology Holos is developing could have other applications in the future but Holos is choosing education technology as its initial target market, Holos CEO and co-founder Daniel Borkhus said.
"The first step that we think everyone needs to figure out in virtual reality is, how are you going to interact with content?" Borkhus said. "From what we've seen on the market, no one's done a good job of creating a user interface, a user interaction system that's going to be friendly enough for people to want to adopt."
Borkhus founded Holos in 2016 with Tyler Waite, the company's chief operating officer. It initially tested its technology in Wisconsin classrooms. The company currently has a nine-person team and could double in size by the end of the year, Borkhus said.
In 2019, the startup began using its technology for military training purposes through U.S. Air Force contracts that totaled $800,000 in grants from the Small Business Innovation Research (SBIR) program. It then secured two basic ordering agreements with the Air Force Air Education Training Command and is now looking to partner with the U.S. Space Force through another SBIR award.
In addition to its consumer-focused platform, Holos also plans to build out its enterprise product for corporate and government use. In March, Holos announced it was accepted into the SmartCityX innovation program, which will give it the opportunity to conduct business with Japanese corporations like Japan Airlines, Suzuki, and passenger railway company JR East.
