ixi Raises $36.5M to Revolutionize Prescription Glasses with Autofocus

A New Vision for Eyewear: IXI's Autofocus Technology

A Finnish startup, IXI, is redefining the prescription eyewear market with an innovative approach. Utilizing advancements in eye-tracking and liquid crystal lens technology, IXI is developing glasses designed to automatically and subtly correct a wearer’s presbyopia, commonly known as far-sightedness.

Securing Funding for Innovation

After four years of development, IXI officially launched on Tuesday, announcing a total of $36.5 million in funding. This investment will facilitate the development of their first commercially available product.

The latest Series A funding round was led by London-based venture capital firm Plural, with contributions from Tesi, byFounders, Heartcore, Eurazeo, FOV Ventures, Tiny Supercomputer, and existing investors.

Previous investors include the Amazon Alexa Fund, Maki.vc, First Fellow, firstminute capital, John Lindfors, Illusian, and Bragiel Brothers.

A Lucrative Frontier in Eyewear

“Eyewear represents the final significant frontier in technology,” stated CEO Niko Eiden, who co-founded the company alongside chief algorithm officer Ville Miettinen. The eyewear market is also a potentially highly profitable one, with estimates exceeding $200 billion and a growth rate surpassing 8%, outpacing both smartwatches and smartphones.

From Nokia and Varjo to IXI

IXI, originally known as Pixieray, was founded by a team with a strong background in mobile technology from Nokia, which was later integrated into Microsoft’s HoloLens XR headgear. The co-founders subsequently established Varjo, a mixed-reality headset developer that has secured over $200 million in venture capital from investors such as Atomico, EQT, and Foxconn.

Shifting Focus from VR/AR

While VR and mixed reality remain areas of interest, Eiden explained that these spaces present significant challenges due to limited market demand and low sales volumes.

Varjo successfully adapted by concentrating on industrial and enterprise applications, a strategic pivot that proved effective.

The Challenges of the VR/AR Market

Despite efforts from major companies like Meta, Apple, Sony, and Microsoft, the VR space has yet to experience substantial growth. Sales have increased steadily, but remain relatively small compared to the broader consumer electronics market, disappointing both startups and tech giants who have invested heavily in the technology.

Microsoft’s discontinuation of HoloLens last October, with no plans for a successor, underscores these difficulties.

A Unique Approach to Eyewear

IXI believes that previous AR and VR endeavors have overlooked a crucial aspect of eyewear: addressing vision correction as a medical device.

“Few companies are leveraging technology to directly improve eyesight, and that’s what sets us apart,” Eiden noted.

The IXI glasses are designed solely to enhance vision; they do not offer features like email access, social media integration, or augmented reality applications.

The Technology Behind IXI’s Glasses

IXI has filed numerous patents related to its innovative eyewear. The glasses incorporate a compact device within the frame that tracks eye movements and adjusts liquid crystal lenses to ensure clear vision.

Pricing and Target Market

While the final price point is still being determined, IXI anticipates pricing its glasses similarly to high-end smartphones, rather than traditional bifocals. The company aims for a mass-market appeal, avoiding ultra-luxury pricing.

The glasses are intended for individuals who require vision correction for both near and far distances, those dissatisfied with progressive lenses, and even those who have undergone laser eye surgery but are experiencing a decline in their corrected vision.

Addressing the "Bounce Back" Effect

Eiden shared that early laser eye surgery recipients are often experiencing a return of their vision problems, requiring bifocals for reading. He personally understands this issue, having been an early adopter of laser eye surgery himself.

The core belief is that many individuals will appreciate the convenience of automatically adjusted vision without conscious effort.

Battery Life and Functionality

IXI estimates a battery life of approximately two days for its glasses. The lenses will initially be designed for near-sighted prescriptions, ensuring clear vision even if the battery depletes while driving. However, reading may become difficult if the battery runs out.

Competition in the Autofocus Eyewear Space

IXI is not alone in pursuing autofocus eyewear, but its approach aims for a more seamless design than existing solutions. Companies like Elcyo (Japan) and Laclarée (France) are also developing autofocus eyewear, but neither has yet launched a product. Laclarée’s launch date has been pushed back to 2026, highlighting the challenges involved.

Vixion (Japan) has released autofocus eyewear, but its devices feature visible camera lens-like components.

Investor Confidence in IXI

IXI’s experienced team and proven track record are key factors driving investor interest.

Amazon’s investment was facilitated by a pre-existing relationship between Eiden and Jeff Bezos, stemming from a previous company. Discussions about potential collaboration between Amazon and IXI’s technology (possibly related to Varjo) occurred but did not materialize.

Amazon’s Vision for the Future of Eyewear

Paul Bernard, head of the Alexa Fund, emphasized the clumsiness of current vision correction solutions and the potential of on-demand vision correction in prescription eyewear. He highlighted IXI’s team’s expertise in VR/XR technologies, gained through their work at Varjo.

Amazon currently sells reading glasses and envisions expanding its role in the eyewear market, potentially leveraging economies of scale to address both corrective vision and AR/VR applications.

Prototype and Future Plans

IXI has successfully demonstrated its technology in laboratory settings. A prototype will be available for viewing later this year. The company is also navigating the regulatory approval process required for selling the glasses as a medical device.

“This is just the beginning,” Havu stated.

With its patented technology and strong investor support, IXI is poised to make a significant impact on the eyewear industry.

“Niko, Ville and the team’s rare European hardware expertise puts them at the forefront of advanced optics and eye-tracking developments,” said Sten Tamkivi, a partner at Plural. “They’re creating beautiful, literally invisible technology that pioneers a new approach to vision which will finally improve human eyesight once and for all. By backing IXI, we’re not just investing in a company, but in a future where technology revolutionises how we see the world.”