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Sandbox VR’s November 2021 $37M Series B: Expansion Plans, Investors and What Happened Next

Sandbox VR raised $37 million in November 2021 to expand its location-based VR venues, games and technology. The round’s plans and later footprint claims require careful qualification.
From TheFinanceBase Team5 min to read
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Sandbox VR announced a $37 million Series B on November 10, 2021, led by Andreessen Horowitz’s Growth Fund, with Alibaba and Craft Ventures also participating. TechCrunch reported that the round brought the company’s cumulative funding to approximately $119 million, correcting an earlier $122 million figure.

The financing was intended to fund ten new retail venues, additional corporate and franchise sites, an expanded game studio, a software-development kit for outside publishers and research into wireless equipment. It was a recovery-and-expansion bet on location-based virtual reality, not an acquisition, IPO or public-market financing.

What Sandbox VR raised

Item Reported detail
Announcement November 10, 2021
Round $37 million Series B
Lead investor Andreessen Horowitz Growth Fund
Other named participants Alibaba and Craft Ventures
Total funding after the round Approximately $119 million, according to TechCrunch’s corrected figure

TechCrunch’s report identified the investors and said the company had been preparing to close the financing before COVID-19 disrupted its business. The capital was private venture funding; the announcement did not disclose valuation, ownership percentages or individual check sizes.

What Sandbox VR’s business is

Sandbox VR operates physical venues rather than distributing a conventional home-VR game. Groups of up to six people enter a tracked play space and use headsets, full-body motion capture, backpack computers, sensors and haptic equipment. The company develops original games and sells the visit as a shared entertainment experience.

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That model combines three elements Andreessen Horowitz highlighted in its earlier investment description: proprietary technology, original content and distribution through premium retail locations. Sandbox VR’s company description similarly emphasizes social multiplayer play and integrated hardware and software.

Where the money was supposed to go

Ten new retail locations

Management said the round would support ten additional retail sites worldwide. Planned 2022 openings named in the announcement were Paramus, New Jersey; London; and Toronto. The plan also included two corporate locations and two franchise locations. These were targets announced with the financing, not confirmation that every site opened on schedule.

More games and outside developers

Sandbox VR planned to enlarge its internal studio and release new experiences more frequently. It also planned an SDK that could let third-party publishers build for the platform. The available announcement confirms the intention, not a completed SDK launch.

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Wireless hardware research

Chief executive Steve Zhao said the company was researching wireless technology that could remove the backpack computer players carried. In 2021 this was a development objective, not a commercially deployed replacement.

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Footprint at the time of the Series B

TechCrunch reported that Sandbox VR had 12 retail locations across the United States, Canada and Asia and approximately 35 employees as of October 2021. Three venues—Austin, Las Vegas and Shanghai—had opened in July 2021.

The company’s venue strategy mixed company-operated, corporate and franchise sites. That approach can accelerate geographic coverage, but it also makes location counts and operating economics harder to compare: a corporate venue, a franchise unit and a temporarily closed site may be counted differently.

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Why the round mattered after COVID-19

The financing followed a severe disruption to location-based entertainment. Zhao told TechCrunch that the company had expected to close its Series B in early 2020, then had to lose approximately 80% of its employees and file for bankruptcy during the pandemic. After global offices reopened in April 2021, he said revenue was 20 times higher than at the beginning of that year.

Those workforce, bankruptcy and revenue figures are company statements reported by TechCrunch, not independently audited financial disclosures. The “20 times” comparison describes a recovery period after reopening; it is not the same as 20-times year-over-year growth or a 20-times increase in annual revenue.

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Which games were available in November 2021

TechCrunch listed five experiences at the time of the financing:

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  • Curse of Davy Jones
  • Amber Sky 2088
  • Star Trek: Discovery – Away Mission
  • Deadwood Mansion
  • Unbound Fighting League

Sandbox VR’s current About Us page refers to seven exclusive experiences, but the retrieved page does not provide a complete, dated catalog. The five titles above should therefore be treated as the November 2021 lineup, not a current list.

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What happened to the expansion plan

There is evidence that at least part of the plan was implemented. In September 2022, tracking-technology company Vicon said Sandbox VR had opened six additional venues—five in North America and its first London location. Vicon’s announcement is useful confirmation of later expansion, but it does not verify that all ten planned retail locations, the two corporate sites or the two franchise sites opened as originally scheduled.

Public footprint figures later diverged:

Source and date Reported footprint How to read it
TechCrunch, November 2021 12 retail locations Position at the Series B announcement
Miracle Mile Shops release, November 2022 30 locations in seven countries Property announcement, not a company filing
Aver Investments material, March 2023 36 global locations Investor material
Sandbox VR About Us page More than 35 combined retail and franchise locations Official claim; date and counting method are not stated on the page
Sandbox VR LinkedIn profile More than 80 combined retail and franchise locations Company-profile claim that conflicts with the About Us page

Because the definitions and update dates are not reconciled, it is not accurate to present “more than 80” as an independently established current total. The differing figures may reflect timing, franchises, closures or counting conventions.

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The financial logic—and risks—of location-based VR

Why venues can be attractive

  • Customers can experience high-end tracking and haptics without buying expensive equipment.
  • Group play supports parties, dates, corporate events and tourist entertainment.
  • Physical venues provide a direct route to bookings and repeat visits.

Why the model is capital-intensive

  • Each site requires specialized tracking, haptic and computing equipment plus a physical build-out.
  • Operators must pay for staff, maintenance, safety procedures, insurance and customer acquisition.
  • Locations depend on suitable real-estate foot traffic and discretionary spending.
  • New content is needed to encourage repeat visits, adding continuing studio costs.
  • Venue closures and public-health restrictions can interrupt revenue, as the pandemic demonstrated.

Compared with downloadable home VR, the venue model can deliver a more controlled social experience but has a smaller geographic reach and higher fixed costs. The Series B’s combination of site expansion, content investment and hardware research reflects those economics.

How Andreessen Horowitz positioned the company

Andreessen Horowitz’s earlier announcement described Sandbox VR as a social, multiplayer platform built around premium hardware, motion capture and low-latency software. That description concerned an earlier Series A investment, so it should not be confused with the terms of the November 2021 Series B. It does, however, explain why the investor viewed venues, technology and original content as one integrated platform rather than separate products.

What the Series B does—and does not—establish

  • It establishes a $37 million financing announced in November 2021 and the named lead and participants.
  • It establishes an announced plan for ten new retail venues plus corporate and franchise expansion.
  • It does not establish a valuation, profitability, venue-level economics or completion of every planned opening.
  • It does not prove that the planned SDK launched or that wireless backpacks were commercially replaced.
  • It does not make later company location claims directly comparable without dates and definitions.

Bottom line

Sandbox VR’s Series B was a $37 million attempt to rebuild and scale a premium, social VR-venue business after the pandemic shock. The company subsequently reported additional openings, including its first London venue, so the strategy produced measurable expansion. But the public record does not confirm every 2021 target, and later location totals conflict. The most defensible account is therefore a dated funding story: a major recovery round funding planned venues, content and platform technology—not proof of a fully completed global rollout.

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