It turns out the virtual and augmented reality companies aren’t dead — as long as they focus on the enterprise. That’s what the Los Angeles-based extended reality technology developer Talespin did, and it just raised $15 million to grow its business.
Traditional venture capitalists may have made it rain on expensive Hollywood studios that were promising virtual reality would be the future of entertainment and social networking (given coronavirus fears, it may yet be), but Talespin and others like it are focused on much more mundane goals. Specifically, making talent management, training and hiring easier for employers in certain industries.
For Talespin, the areas that were the most promising were ones that aren’t obvious to a casual observer. Insurance and virtual reality are hardly synonymous, but Talespin’s training tools have helped claims assessors do their jobs and helped train a new generation of insurance investigators in what to look for when they’re trying to determine how much their companies are going to pay out.
“Talespin‘s immersive platform has transformed employee learning and proven to be an impactful addition to our training programs. We’re honored to continue to support the Talespin team through this next phase of growth and development,” said Scott Lindquist, Chief Financial Officer at Farmers Insurance, in a statement.
Farmers is an investor in Talespin, as is the corporate training and talent management software provider Cornerstone OnDemand, and the hardware manufacturer HTC. The round’s composition speaks to the emerging confidence of corporate investors and just how skeptical traditional venture firms have become of the prospects for virtual reality.
The prospects of augmented and virtual reality may be uncertain, but what’s definite is the need for new tools and technologies to transfer knowledge and train up employees as skilled, experienced workers age out of the workforce — and the development of new skills becomes critically important as technology changes the workplace.
Cornerstone, which led the Talespin Series B round, will also be partnering with the company to develop human resources training tools in virtual reality.
“We share Talespin’s vision that the workforce needs innovative solutions to stay competitive, maximize opportunity and increase employee satisfaction,” said Jason Gold, Vice President of Finance, Corporate Development and Investor Relations at Cornerstone, in a statement. “We’ve been incredibly impressed with Talespin’s technology, leadership team and vision to transform the workplace through XR. Talespin’s technology is a perfect fit in our suite of products, and we look forward to working together to deliver great solutions for our customers.”
Talespin previously raised $5 million in financing. The company initially grew its business by developing a number of one-off projects for eventual customers as it determined a product strategy. Part of the company’s success has relied in its ability to use game engine and animation instead of 360-degree video. That means assets can be reused multiple times and across different training modules.
“Creating better alignment between skills and opportunities is the key to solving the reskilling challenges organizations across the world are facing,” said Kyle Jackson, CEO and Co-Founder of Talespin, in a statement. “That’s why it’s critical companies find a way to provide accelerated, continuous learning and create better skills data. By doing so, we will open up career pathways for individuals that are better aligned to their natural abilities and learned skills, and enable companies to implement a skills-based approach to talent development, assessment, and placement. Our new funding and partnership with Cornerstone will allow us to expand our product offerings to achieve these goals, and to continue building innovative solutions that redefine what work looks like in the future.”