AllFocal raises $5.3M in Seed Funding to develop AR & VR lenses

AllFocal, a Cambridge-based startup focused on optics for augmented reality (AR) and virtual reality (VR), recently raised $5.3 million in funding to advance its groundbreaking lens technology. The round, which included $3.6 million in equity led by SpeedInvest, 7PC Ventures, Another.VC, Martlet Capital, and $1.7 million in grants from Innovate UK, aims to bring AllFocal’s innovative lenses to market. This funding will support AllFocal’s mission to tackle long-standing challenges in AR and VR, including user discomfort caused by traditional fixed-focal-length projections in most headsets.

The unique selling point of AllFocal’s technology lies in its adaptive lenses, which use coated glass to bend light, projecting images directly onto the retina to create a focus-matched experience. By eliminating the need for mechanically adjustable lenses or fluidics, AllFocal’s approach addresses the "vergence-accommodation conflict," a common issue where the eye struggles to focus on virtual objects at different depths, often resulting in dizziness and nausea. This design offers a significant improvement over conventional lenses in VR and AR headsets, which are known for inducing motion sickness in users.

The funding comes as AllFocal embarks on a pilot project with Jaguar Land Rover, where it will test its lenses in automotive applications. This collaboration is expected to begin in early 2025 and will explore the use of AR technology for projecting information directly onto vehicle windshields. The project marks AllFocal’s entry into the automotive sector, although the company sees potential for its lenses in industries ranging from healthcare to aerospace. With plans to double its 10-person team over the next year, AllFocal is preparing for its first product launch, which CEO Pawan Shrestha anticipates within the next two years.

Shrestha, who co-founded AllFocal in 2022, attributes the startup's rapid growth to its proprietary lens technology. “The industry has struggled with this challenge for decades, trying to find workable solutions with mechanically movable lens structures, or fluidics to change,” Shrestha noted, underscoring AllFocal’s unique position in the field. This sentiment was echoed by Ash Saulsbury, AllFocal’s newly appointed chair and former head of Meta’s AR program. Saulsbury, who also served as VP of technology at Microsoft, called AllFocal’s technology “truly magical and revolutionary,” adding that it solves one of AR and VR’s biggest challenges without needing complex mechanical adjustments.

Saulsbury’s addition to AllFocal’s team is expected to strengthen the company’s market position. His expertise in AR technology aligns well with AllFocal’s objectives of creating high-performance lenses that enhance user comfort and visual fidelity. The recent funding will allow AllFocal to scale its operations and refine its lenses for commercial deployment, bringing it closer to its goal of becoming the first company to successfully market adaptive lenses for VR and AR.

As AllFocal looks to the future, it recognizes the potential impact of its technology across multiple sectors. The company is already exploring applications in gaming, defense, and healthcare, among others. The versatility of AllFocal’s lenses makes them suitable for any field where users require precise visual alignment and immersive experiences. The company believes its adaptive optics could redefine the standard for VR and AR, helping the industry overcome some of the major adoption hurdles that have previously hindered widespread usage.

The success of AllFocal’s technology will depend on the broader adoption of VR and AR in professional and consumer settings. While the future of these technologies remains uncertain, the support from industry leaders and investors provides a solid foundation for AllFocal’s progress. AllFocal aims to raise an additional £10-15 million within the next two years to scale manufacturing and accelerate its growth.

With its pioneering lens technology and a strong leadership team, AllFocal is poised to make a meaningful impact on the optics industry. By solving a critical issue in VR and AR headsets, AllFocal’s adaptive lenses could pave the way for more comfortable, immersive experiences, bringing these technologies closer to mainstream adoption.

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