AltspaceVR shuts down citing ‘financial difficulty’

Virtual reality social network, AltspaceVR, is due to close down on August 3, citing “unforeseen financial difficulty”.

In a statement published on the company’s website, AltspaceVR said the turn of events was “surprising, disappointing, and frustrating”, and added that “we can’t afford to keep the virtual lights on anymore”.

The venture-backed firm, which allows people to meet in a virtual environment, said that the combination of a failed funding round and the “general slowness of VR market growth” had made most of its investors “reluctant to fund us further”.

“We’ve been out fundraising but have run out of time and money,” said Altspace, which stressed that its product was working with around 35,000 people using its service each month – “pretty good for the size of the VR market”.

“We are all humbled by what you made of this virtual oasis. Thank you for spending your time building, hosting, and making the best community we could have wished for,” said the company.

“There have been many tears and there will probably be a few more to come. We’ve given up wiping off the mist that clouds our headsets. Please join us for a final farewell party on 8/3. At the end of the party, we will be shutting down AltspaceVR.”