Is VirZOOM stock a good investment?
/VirZOOM, a company poised to revolutionize the intersection of virtual reality (VR) and physical fitness, is offering retail investors an opportunity to participate in the future of entertainment and wellness.
Co-founded in 2015 by Eric Janszen and Eric Malafeew, VirZOOM’s technology pioneers new methods of VR navigation while tackling the major sedentary lifestyle consumer health issue.
But, is investing in VirZOOM stock worth the risk? Keep reading to decide for yourself.
What is VirZOOM?
VirZOOM creates VR apps and games that provide unique real-world experiences by employing patented technology that allows players to move freely and comfortably through virtual worlds. Unlike traditional VR systems that rely on joysticks and “teleportation,” VirZOOM's technology enables users to move their bodies in the real world to navigate virtual environments naturally. This approach enhances immersion, and also turns gameplay into a form of exercise.
The vision for VirZOOM began in 2014 when co-founders Eric Janszen and Eric Malafeew met at Victor’s Diner in Hudson to discuss using VR to create engaging and physically active experiences. Leveraging his mechanical engineering and video game industry expertise, Malafeew developed a novel motion technology. They officially founded the company in 2015 and released their first VR exercise games in 2016.
How does VirZOOM make money?
VirZOOM offers two innovative VR products: VZfit and FLY. VZfit, launched in early 2019, allows users to explore the world through Google Street View by turning stationary biking into a global adventure.
The FLY collaboration began in 2018 when Google recognized the potential of VirZOOM's motion controls. FLY uses body movements instead of a stationary bike to create an immersive experience that navigates Google's 3D earth imagery.
VirZOOM's revenue model includes subscription services and direct app purchases. For VZfit, they offer monthly ($11.99) and annual ($99.99) subscriptions. With the upcoming launch of FLY on major VR stores, VirZOOM plans to introduce a pay-per-download model priced at $9.99, supplemented by in-app purchases for additional content and features. This diversified revenue approach ensures a steady income stream from dedicated users while also attracting casual gamers and fitness enthusiasts.
VirZOOM’s success
Since VZfit's launch in early 2019, the application has generated over $1.5 million in revenue, with 950,654 lifetime installs and 655,968 lifetime active users. Also, VZfit's annual revenue surged by 74.6%* from 2022 to 2023, contributing to a total revenue of $3 million for the company to date.
In 2023, the company received a major development grant from Meta to enhance VZfit for the new Meta Quest 3.
Press reviews have consistently praised VirZOOM's products. Forbes remarked, “The best part? I barely noticed I was working out,” while The Washington Post highlighted the unique experience of virtual cycling, stating, “Tired of biking in the gym? Virtual reality lets you cycle in Iceland, instead.” Other notable reviews include VRFitnessInsider calling VZFit “a fantastic way to get a workout in,” Men’s Fitness observing, “20 minutes have flown by and I haven’t even noticed!” and Refinery29 expressing, “I couldn’t stop grinning.”
What challenges does VirZOOM solve?
VirZOOM addresses several critical challenges in the VR industry, primarily the issue of natural movement within virtual environments.
The health implications of prolonged inactivity are well-documented, with research showing that sitting for more than eight hours without physical activity carries a mortality risk comparable to obesity and smoking.
Traditional VR platforms have relied on joysticks for navigation, which often disrupts immersion and can cause discomfort. VirZOOM's innovative motion technology enables users to move through virtual worlds by moving their bodies in the real world, providing a more natural and engaging experience.
VirZOOM's products, VZfit and FLY, tackle this issue by ensuring users engage in physical activity while enjoying VR. Whether users are vigorously exercising with VZfit or moving more modestly with FLY, they are standing and moving, which is a significant improvement over traditional sedentary gaming. Furthermore, VirZOOM's patented motion control technology minimizes the risk of simulation sickness, a common problem in VR. By synchronizing the visual and physical movements of the user, their technology reduces the discrepancy between what the eyes see and what the inner ears feel, which can be the cause of nausea in VR experiences.
VirZOOM’s growth plans
VirZOOM plans to develop numerous VR exercise games over the next six years and reach $500 million in Annual Recurring Revenue by 2030. The company aims to create games that appeal to a wide range of player personas, replicating the success of its bike-based games on a larger scale.
Central to the expansion plans is the vSports Hub, which will feature various sports, from downhill skiing to arena battles. Additionally, they plan to broaden the availability of their FLY app, first moving it to the Meta Horizon store and subsequently to XR platforms like Apple Vision Pro. They also announced future platforms from Samsung and Sony.
VirZOOM's long-term growth plans are backed by a solid investment history. Notable investors like Jon Goldman of Greycroft and over a dozen others have re-invested multiple times since 2015. Co-founder and CEO Eric Janszen is the largest individual investor, contributing $1.5 million in cash and deferred salary.
Should I invest in VirZOOM?
If you’re wondering, “Should I invest in VirZOOM?” at Money & Mimosas, we encourage you to ask yourself three questions:
What are the potential roadblocks?
What is the potential growth or upside?
How does this align with my values and/or overall investment strategy?
Overall, investing in VirZOOM is a compelling opportunity. For starters, VirZOOM’s development team boasts a combined 175 years of game design and 50 years of VR development, including successes like Guitar Hero, Rock Band, and Dance Central. Also, the company has demonstrated a product market fit marked by its $3M in revenue, significant user base growth, and strong partnerships with industry leaders like Meta and Google. Additionally, positive user feedback and press reviews highlight high satisfaction and demand for VirZOOM's offerings.
How to buy VirZOOM stock
You can invest in VirZOOM for $0.58 per share. The minimum investment is $1,000.50 and is open to all investors. You don’t have to be an accredited investor to invest in VirZOOM.
The process of investing is really easy. You head over to the investment page and click the ‘Invest Now’ button. From there, the website will walk you through the seamless process of becoming an investor with VirZOOM.
