Volumetric video captures a three-dimensional space or object using computer graphics, photogrammetry, and computation-based methods. Since these videos are recorded in 3D, they can be viewed on web or mobile without any specialized hardware or equipment. Arcturus is a suite of software that allows content creators can to easily record, edit, and distribute native volumetric content at scale. The company’s platform can be used in sports, gaming, e-commerce, live performances, real estate, or any other applications where dimension and perspective on depth and space can enhance the viewing experience.
LA TechWatch caught up with Head of Marketing Piotr Uzarowicz to learn more about volumetric video, the company’s traction, future plans, and recent round of funding.
Who were your investors and how much did you raise?
Arcturus is the leader in post-production and streaming tools for volumetric video, and our recent seed round of funding raised $5 million. The funding round was led by BITKRAFT Ventures, and groups from gaming, music, sports, and telecoms participated, including HBSE Ventures, NTT Docomo Ventures, Build Ventures, Marc Merrill (Cofounder, Co-chairman, and former Co-CEO of Riot Games) and Craig Kallman (CEO of Atlantic Records).
Tell us about your product or service.
Arcturus is currently focused on two products: HoloEdit and HoloStream – together they make up HoloSuite, a SaaS platform created to edit and distribute volumetric video. With HoloSuite, users can create and edit volumetric video, then stream them to any desktop browser where the viewer can watch the 3D content from any angle – no glasses, special hardware or apps required. HoloStream allows for volumetric video to be streamed to any mobile device over a 4G (or better) network.
With HoloEdit, content creators from gaming studios to VFX teams to musicians can easily edit and compress their clips, then send them to third-party tools. That includes game engines like Unity and Unreal Engine. Our proprietary compression tool in HoloStream then allows those videos to reach any compatible device without a loss of quality, similar to the way streaming giants like Netflix and Hulu distribute content, just with much larger files.
What inspired the start of Arcturus?
Our founders realized early on that volumetric video would need a professional set of post-production tools to maximize its value. As with any other medium, like still images or video, post-production tools were developed to augment and help producers craft their vision. But since volumetric video produces photo-realistic 3D holograms, our tools were built from the ground up to support that workflow and to maximize volumetric video’s value. For example, volumetric video allows viewers to interact with the subject in real-time, and our tools drive that interactivity.
How is it different?
We are the world’s first commercially available end-to-end post-production and distribution platform for volumetric video.
While new companies are emerging to provide various pieces of the production pipeline, Arcturus’ solution is an elegant one-stop-shop for editing and delivering content to any end target, including web, mobile, game engines, and more. We are just starting to see the many benefits of volumetric video as clever creators find new ways to make the technology work for them, and our tools are designed to keep up.
What market you are targeting and how big is it?
The holographic content market which is an overlapping market will reach $6B by 2025. We believe a significant portion of that will be with AR/VR and gaming industries. The Augmented Reality market alone will reach $17B 2021 and is expected to rise by 43% over the next seven years.
What’s your business model?
We are a SaaS company – our software is available on a subscription basis. At the same time, we recognize that volumetric video production is still in early stages. There are a lot of companies that appreciate our experience and expertise in the development of volumetric video projects, and so we offer consulting services as well.
How has the business impacted by COVID-19?
In general, velocity slowed during the pandemic and deals took longer to close due to the uncertainty. On the volumetric content creation side, some of our clients took advantage of being able to make virtual, holographic copies of people and still deliver large-scale advertising campaigns that otherwise were not possible because of the virus. For example, we worked with Samsung to deliver volumetric versions of BTS (the K-pop boy band) that were then incorporated into Samsung’s new phone launch. When users used the camera on their phones, it seemed like members of BTS were in their room. Fans loved it and the campaign illustrated the power of volumetric video. In addition to forward-thinking clients like Samsung, we also figured out a way to work remotely, continue delivering business value and help our customers. We even completed a fund-raise virtually.
What was the funding process like?
The funding process was fairly straightforward and traditional. We pitched VCs and investors and answered questions, including deep dives on the market, opportunities, and our technology offering. We then created a shortlist of partners we wanted to work with. We chose BITKRAFT because we appreciated their candor, professionalism, and the relationship we formed with them. From start to finish, it took us roughly four months to complete.
What are the biggest challenges that you faced while raising capital?
Volumetric Video is a new, emerging medium where the technology, market, and opportunity all require a level of education. Once we educated investors on the opportunity, the interest level and enthusiasm spiked.
Volumetric Video is a new, emerging medium where the technology, market, and opportunity all require a level of education. Once we educated investors on the opportunity, the interest level and enthusiasm spiked.
What factors about your business led your investors to write the check?
There were several factors that enticed investors, including macro-economic trends like 5G and high-speed data, augmented reality, and the spatial computing era. When we showed them how we combined those with our world-class team, and the fact that we already had software products and customers, the investors wrote the checks.
What are the milestones you plan to achieve in the next six months?
Our seed funding will be used to scale the software development team at Arcturus, increase efforts on sales growth and expand the product line with an emphasis on live streaming features.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
This may be nothing new, but our advice would be to do your homework. You need to understand your product and the market it serves. Make sure the opportunity is clear and easy to explain and develop a unique narrative on why you’re the right company to take on your specific problem and solve it. Be clear on what business objectives you’d like to reach, and how you’ll use the new capital.
Where do you see the company going now over the near term?
Arcturus’s mission is to make intelligent tools to craft and deliver captured life to the 3D spatial ecosystem. We intend to continue to support the volumetric video community and help it grow.
What is your favorite restaurant in LA?
Can’t go wrong with Trejo’s Tacos.
