One of South Florida's "unicorn" technology companies just completed another massive funding round.
Plantation-based Magic Leap raised $500 million to support the rollout of its Magic Leap 2 augmented reality headset, the company announced Monday. With a $2 billion valuation, the venture is among a handful of private companies in the tri-county area valued at $1 billion or more.
Magic Leap did not name any investors and did not immediately respond to the Business Journal's request for comment. In a statement, CEO Peggy Johnson said the company was supported by existing investors.
“This investment is an important step in advancing Magic Leap’s mission to transform the way we work,” said CEO Peggy Johnson said in a statement. "With a solid financial foundation and the infusion of new capital, Magic Leap will enhance its current go-to-market efforts and ability to deliver augmented reality solutions that drive business transformation outcomes for the enterprise market."
Magic Leap has raised $3 billion from a variety of international investors since its founding in 2011, including Singapore's Temasek Holdings, Google, AT&T, China's Alibaba Group and NTTDoCoMo, a Japanese telecommunications company.
After lackluster sales of its first generation headset, Magic Leap is pivoting to business customers with the launch of the Magic Leap 2, scheduled for release in 2022. The device is a light weight, wearable computer designed to increase productivity in the workforce. Johnson said Magic Leap has partnered with businesses like Miami-based Heru to develop an AR solution for diagnostic eye exams. Another business, Farmers Insurance, used Magic Leap technology to train new hires remotely.
“Since joining Magic Leap in 2020, my focus has been on accelerating the company’s shift to the enterprise market, strengthening our technological foundation, and building a robust business across sectors ranging from health care and manufacturing to defense and the public sector," said Johnson, who was appointed CEO after founder Rony Abovitz stepped down from the company.
Magic Leap had about 1,600 employees – including 1,000 in South Florida – until last April, when it announced it was making cuts due the economic impact of the pandemic. The layoffs reportedly affected nearly half of its workforce companywide. Soon after, it announced it raised $350 million to reverse some of those job cuts.
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