Source: Engadget

An AR – augmented reality – headset startup, which was funded by Playground Global of Android co-creator Andy Rubin and founded by former Valve employees, is reportedly shutting down after it was unsuccessful in receiving any further investment from other companies. According, to recent reports by news site Polygon, the reason behind the shutdown was lack of investments.

Here’s the full report on the startup

CastAR, accoridng to its main website, was a Palo Alto-based technology startup company that was founded in March 2013 by Rick Johnson and Jeri Ellsworth. The first product of the AR headset startup was to be a pair of augmented reality and virtual reality glasses, which were to be called castAR.

The startup backed up by Android co-creator Andy Rubin was building a headset device that could project holographic images into the field-of-view of a user. The headset device was similar to products that were being built by companies such as Magic Leap and Microsoft. According to the reports, after the layoff of less than 70 employees from the startup, a core group is now trying to sell off the tech of the startup.

CastAR, which was founded by Rick Johnson and Jeri Ellsworth some four years ago, is now closing down due to lack of report, according to several reports by news sites like TechCrunch and Polygon. The founders of the company – Jeri Ellsworth and Rick Johnson –   left Valve with a host of AR research and possibly their blessings to build Augmented reality hardware.

CastAR raised quite a lot of money then returned it to backers

In addition to this, the team got a $1 million funding from a Kickstarter campaign. Later after raising around $15 million from Playground Global and pushing back the timeline for delivery of the devices even further, the company returned the money to its backers. Because of increasing interest of companies and tech giants like Google and Apple, the phone-based augmented reality technologies have taken off but the challenges in creating amazing headset hardware is proving difficult to the startups and companies that are embracing the challenge.

This augmented reality headset startup, for one, was striving to create a solution with significantly less funding than other startups such as Magic Leap. (Just for your information, Magic Leap has raised around $1.4 billion in funding and as per reports, it is still facing a large number of production issues). This year, the AR Headset startup was aiming to show off its headset and had created a content studio called Eat Play Sleep that was made up of several former Disney Infinity employees. Both Playground Global and CastAR were not immediately available for comment. According to reports, the Eat Play Sleep studio has been closed down as part of the layoffs.