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Magic Leap confirms it has raised $502 million in funding

By Nancy Dahlberg / ndahlberg@miamiherald.com

Magic Leap confirmed that it has raised another large funding round as it apparently readies its first product for launch.

The secretive South Florida tech startup announced on Tuesday that it has raised $502 million in a Series D round of funding led by Temasek Holdings, an investment fund owned by Singapore’s government. The round includes three other new investors, Grupo Globo of Brazil, EDBI of Singapore and Janus Henderson Investors, and existing investors Alibaba Group, Google, Fidelity Management, JP Morgan and T. Rowe Price.

“We’re excited to welcome Temasek and the other new investors in this round to the Magic Leap family,” said Rony Abovitz, founder and CEO of the Plantation-based Magic Leap, in a news release. “We also greatly appreciate the strong support and partnership from our existing shareholders.”

Magic Leap had already raised $1.4 billion, which brought a valuation of $4.5 billion at the time. The new funding brings the company’s total funding to nearly $1.9 billion, and significantly expands Magic Leap’s arsenal as it prepares to launch a long-awaited headset or pair of smart glasses with its proprietary “mixed reality” technology. Magic Leap has not yet revealed a product, and those who have seen the technology have signed a non-disclosure agreement.

Last week, a Delaware filing showed that Magic Leap authorized up to $1 billion in new shares. Last month, a Bloomberg report cited sources who said Magic Leap would be raising about $500 million from Temasek and others, and suggested that a limited launch of its product – bigger than a pair of glasses but smaller than VR headsets now on the market – may be within the next six months. The sources also said the device could be priced around $1,500 or higher, but Magic Leap has not said when it plans to release its product or released pricing details.

Magic Leap is believed to have more than 800 employees in South Florida and hundreds more in offices around the world, including Los Angeles, Sunnyvale, Seattle, Austin, Dallas, Zurich, New Zealand and Israel.

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