Inspace XR, a virtual reality property startup, has secured $750,000 in funding from Investible, Artesian, Taronga Group, and Sydney Angels. Justin Liang, the co-founder and CEO, drew on his experience in venture capital to avoid common pitfalls that early-stage startups often face. The company was established almost two years ago when Liang left AMP Ventures, the venture arm of a financial services firm. He then teamed up with Eric Fear, former VR lead at the Academy of Interactive Entertainment, to create Inspace XR.
Inspace XR uses its River Fox VR technology to enable architects and builders to showcase their building designs by allowing clients to walk through a virtual mock-up of their finished product. This minimizes the risk of expensive design errors. According to Liang, the technology changes the way buildings are designed, constructed, and sold.
The River Fox technology has already been adopted by major players in the real estate industry such as JLL, CBRE, Charter Hall, Folkestone, and Macquarie Bank. In addition, Inspace Labs, the company’s consulting arm, provides bespoke VR and augmented reality projects and other hardware solutions. Liang confirms that the Labs arm is growing quickly and is “very profitable.”
Identifying the Appropriate Investor Type
Liang, the CEO of Inspace XR, revealed that the company began establishing connections with investors before they required funding to gain early feedback on the business. When it was time to secure funding, several investors offered to lead the round, but Investible was chosen due to their alignment with Inspace XR’s growth strategy.
Aside from being a suitable professional match, Inspace XR also shared a friendship with Investible’s co-founders, who are both former startup founders and possess valuable founder empathy, according to Liang. The funds from the funding round will be allocated to River Fox’s further development and the launch of new products, as the company moves into the AR space with its offerings for the building and engineering industries.
Liang also stated that Inspace XR has plans to expand internationally, with the Australian market representing just 2% of the company’s global market. Within two to three years, Inspace XR intends to have a significant global presence, with the US and China being the company’s next target markets.
Selecting the Proper Team Members
Liang’s background in AMP Ventures gave him valuable insights into the startup ecosystem, enabling him to steer clear of common pitfalls such as knowing what investors genuinely care about, which business models are more easily scalable and which ones are challenging. Additionally, Liang gained a grasp of the importance of timing, as some groundbreaking technology may not be viable too early or too late in the market.
Despite these factors, Liang asserts that finding the right team members is the most significant contributor to his business’s success. He believes that, as a founder, it is one’s responsibility to select the appropriate players who comprehend the game and are capable of winning it. Inspace XR is also developing a network of advisors and strategic investors in addition to recruiting employees to support their progress. Liang emphasizes that having all of these components in place is critical to their journey.
