Touchcast Raises $55M for Mixed Reality Virtual Events

The Rise of Virtual Events and TouchCast's $55 Million Funding

Over the past year, with many in-person events cancelled due to the global health crisis, a significant shift towards virtual and online experiences has occurred. This has spurred growth and investment in startups focused on facilitating these digital gatherings.

TouchCast Secures Funding to Meet Surging Demand

New York-based video startup, TouchCast, has recently secured $55 million in funding. The company’s platform enables businesses to produce realistic, virtual conferences and events with minimal technical expertise. Co-founder and CEO Edo Segal stated the funds will be allocated to expanding services and teams, driven by overwhelming demand following the onset of COVID-19.

The funding round was spearheaded by Accenture Ventures, the investment division of the global consulting firm. Additional investors included Alexander Capital Ventures, Saatchi Invest, Ronald Lauder, and other undisclosed parties. TouchCast had previously been primarily self-funded, and while the exact valuation remains confidential, Segal confirmed it reaches nine figures – representing hundreds of millions of dollars.

Strategic Investment by Accenture

Accenture’s investment extends beyond simply utilizing TouchCast’s technology for its own events. The firm serves numerous corporate clients seeking to develop and implement interactive services, potentially expanding TouchCast’s customer base.

Segal recounted a recent business pitch with a major airline, conducted from within an aircraft hangar, illustrating the company’s momentum and the high-profile nature of its engagements.

Beyond Basic Videoconferencing

Many current virtual events are essentially enhanced group video calls using platforms like Zoom, Google Hangouts, Microsoft Teams, and Webex. These often present participants in a grid layout, resembling television show opening credits rather than a traditional stage.

However, some companies, like Apple, have demonstrated the potential for highly polished and engaging virtual events, offering greater detail and a more seamless experience than live counterparts.

Replicating Apple’s production quality is often beyond the reach of many organizations, both financially and logistically.

TouchCast's Innovative Approach

TouchCast’s platform leverages computer vision, video streaming technology, and natural language processing to create virtual experiences that rival those of industry leaders. Segal asserts their goal is to empower all companies to host events comparable to Apple’s productions, moving beyond the limitations of home office setups.

The platform works by allowing organizers and participants to utilize standard videoconferencing tools from their homes. TouchCast then employs computer vision to isolate individuals and integrate them into virtual “venues,” creating the illusion of an in-person conference setting.

Features and Functionality

These virtual venues are available as pre-designed templates, or can be custom-built with specific locations. Beyond the event itself, TouchCast provides tools for audience interaction, including Q&A sessions and chat functionality. Real-time transcriptions and summaries of key points are also generated for attendees.

While currently focused on business applications, TouchCast is developing features to incorporate musical performances and special guests, hinting at potential expansion into consumer-facing events.

A Pivotal Moment for TouchCast

TouchCast’s evolution into a provider for event planners highlights the importance of adaptability and recognizing unforeseen opportunities. The company’s journey serves as a valuable lesson for founders and investors alike.

From Interactive Video to Virtual Events

TouchCast initially emerged in 2013, co-founded by former TechCrunch editor Erick Schonfeld, with a vision to enhance online video with interactive elements and media widgets.

The initial concept didn’t gain significant traction, and some observers believed the company had ceased operations. However, Segal clarifies that the core technology developed for the original video product forms the foundation of its current conferencing solution.

After launching a preliminary version, the company spent six months refining the platform, incorporating mixed reality customization using Unreal Engine, to meet the growing demand from customers who experienced TouchCast events firsthand.

“It took us eight years to get to our overnight success story,” Segal remarked.

The Expanding Virtual Events Market

According to Grand View Research, the virtual events market is projected to reach $400 billion by 2027. This growth has attracted numerous companies, including Hopin and Bizzabo, as well as established videoconferencing providers like Zoom, Google, Microsoft, and Cisco.

Accenture’s investment reflects its recognition of TouchCast’s potential within this rapidly expanding market.

The Future of Events: A Hybrid Approach

The pandemic has accelerated the acceptance of virtual events, and many anticipate a hybrid model will persist even after the return to in-person gatherings. The demand for high-quality, engaging virtual experiences is expected to remain strong.

Tom Lounibos, Managing Director at Accenture Ventures, emphasized the need for companies to transform their business practices in response to digital disruption, distributed workforces, and evolving customer expectations. He stated that TouchCast’s technology addresses the critical need for quality interactions and insights in virtual environments.