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Magic Leap saves itself with 350 million dollar investment

Magic Leap got out of harm’s way with an investment of $350 million, according to CEO Rony Abovitz’s mail to its employees.

The augmented reality company is bordering on strong changes. After firing almost half of its workforce and shifting to enterprise space, Magic Leap was working on its new headset Magic Leap 2.

The funding came from major investors

The letter sent to its remaining employees by the CEO Rony Abovitz, explained they got an investment lead by major investors in Magic Leap with new investors as well. Abovitz did not name the investors in his mail. The company got investments from Alibaba, AT&T, Google, NTT Docomo, Warner before.

It was reported that the company was expecting an investment from a major healthcare company, and some publications named Zimmer Biomet as a possibility, but we are not sure if they are among the recent investors.

Abovitz also told the employees, that Magic Leap will withdraw from the conditional WARN notice. A conditional warn notice is a requirement for companies to let the employees know 60 days before there will be a big layoff in the company.

The mail also read “We are making very good progress in out healthcare, enterprise and defense deals. As these deals close, we will be able to announce them”. Abovitz added that there are plans to get additional investment which would be possible in the following weeks.

Here is the complete letter by Ron Abovitz sent to Magic Leap employees

“Dear Magic Leapers,

I am very happy to report today that we have secured financing for Magic Leap – and that we have closed the first phase of that investment and commitment today. The investment is led by current major investors in Magic Leap, as well as new investors. We are also working on closing possible additional investment; in the coming weeks.

Closing a financing such as this during the current difficult economic environment is a significant show of belief in our spatial computing mission, vision, and technology. This is also a show of belief in our team’s ability to deliver on our upcoming enterprise market mission, including the deep focus on Magic Leap 2.

Today, as we have secured financing, we are also formally withdrawing the conditional WARN notice hat was sent to you on April 22, 2020; otherwise there are no changes to the terms of employment and we look forward to continuing normal operations.

We are making very good progress in our healthcare, enterprise, and defense deals. As these deals close, we will be able to announce them.

I want to thank you all of you for your indomitable spirit; and for continuing to support each other and our company.

Thank you,