New Funding to Accelerate Sandbox VR’s Global Franchise Program Set for Explosive Growth, With 200 Projected Stores in 2027
To accelerate its growth in North America and Europe, the company has recently raised a US$6.8 million convertible note led by funds managed by Gobi Partners, who has supported the company in multiple rounds of financing.
The company topped 1.4 million tickets sold in 2024. An average Sandbox VR location in the US achieved US$1.7 million in annual revenue.
With a predominant presence in the US and Western Europe, Sandbox VR has grown the number of lifetime franchise operators 3x in 2024 alone, from 8 to 25 total operators. With this momentum, the company plans to operate 200 locations before the end of 2027.
Other notable investors in this round include Abacus Ventures Growth Fund, which has invested over US $1 million, and Hyphen Capital.
Robust Expansion Through Franchise Program
With over 100k players monthly, Sandbox VR is rapidly growing its global footprint with thriving corporate-owned locations and a robust franchising program.
Sandbox VR's franchise program launched in 2019 for international markets and opened up for the US territories since April 2024. Franchising has been instrumental in making Sandbox VR the fastest-growing location-based VR startup globally, and this momentum signals continued rapid growth, the company said. Its first franchise opened in Singapore in 2019.
"We are passionate about creating the future of entertainment and giving people the opportunity to step into a whole new reality. After opening corporate-owned locations and seeing millions of players gear up to enter our immersive virtual reality experiences, work together toward a common goal, and create connections while being active and having fun, we were excited to expand our presence further," said Steve Zhao, Founder and CEO of Sandbox VR.
"We knew franchising was a key component of scaling and that it was critical that we work with the right partners, operators who share our passion and believe in our vision. Today, we are thrilled to be working with esteemed franchise partners across the globe and look forward to collaborating with additional partners as our franchise program continues to flourish."
Chibo Tang, Managing Partner at Gobi Partners, expressed confidence in Sandbox VR's trajectory, "As a serial backer of Sandbox VR, we have witnessed the company's remarkable evolution from pioneering immersive entertainment to becoming a global leader in location-based virtual reality. Their focus on global expansion, franchise scalability, proprietary VR technology, and innovative IP development sets them apart in the industry. We are proud to lead this latest round of funding and continue supporting Sandbox VR in its mission to redefine entertainment and create unparalleled experiences for players worldwide."
Franchise Partners Remain Key to Success with Growth Opportunity in Asia
Asia remains a key market for Sandbox VR, with its strong corporate presence in Hong Kong and Singapore, and corporate-owned locations in Hong Kong, Macau and Shanghai.
Apparel Group, a global fashion and lifestyle conglomerate in the Middle East, partnered with Sandbox VR to bring virtual reality innovation to the region. Apparel Group has over 85 brands and over 2,200 stores across 14 countries. This collaboration will begin with 25 locations in the Middle East.
Sandbox VR's UK and Ireland franchise partners, VR Entertainment Group, is proof of the strength of the Sandbox VR franchise program. They have launched three UK locations, two in London and one in Birmingham, and plan to open additional locations across the UK and Ireland. In London alone, VR Entertainment Group has seen a 16.8% increase in guests year-to-date and projects their 2024 revenue to top $5 million.
Sandbox VR is working with two franchise partners in Germany, NextLevel Erlebnisse GmbH and Royal Casino DGS GmbH. The former signed an agreement to open three locations in 2022. The success of their first locations led NextLevel Erlebnisse GmbH to expand their agreement in 2023 to 12 locations across West Germany by mid-2026. Franchise partner Royal Casino DGS GmbH executed an ambitious 12-unit deal to open locations across Northern and Eastern Germany by the end of 2026 after reading an article about Sandbox VR. Their first two locations, in Hamburg and Berlin, opened in 2024. With six locations currently open and many more to come, Germany is Sandbox VR's largest international market.
What Sandbox VR is offering
Sandbox VR is creating the world's most immersive full-body VR platform and experiences using proprietary, patented technology that combines full-body motion capture and high-quality haptics to provide unprecedented realism and complete immersion that's not possible with home VR or other location-based VR platforms.
As of January 2025, Sandbox VR offers nine exclusive games, including original and branded experiences, such as Squid Game Virtuals, created in collaboration with Netflix. They are all developed by in-house AAA gaming studios in Hong Kong and Vancouver, led by game industry veterans and are specifically designed for groups to play as social experiences. Teams of up to six freely roam and explore virtual worlds together while relying on each other to succeed and to experience being the stars of their own action movie.
The list of Sandbox VR immersive entertainment experiences
| Rebel Moon: The Descent - Images available HERE | The newest Sandbox VR experience and second partnership with Netflix, Rebel Moon: The Descent allows you to enter the thrilling sci-fi franchise that's taken the world by storm. |
| Deadwood PHOBIA - Images available HERE | The latest installment of VR's most iconic zombie series, Deadwood PHOBIA takes players into a derelict medical facility crawling with unprecedented, mind-bending horrors. |
| Squid Game Virtuals - Images available HERE | Compete against your crew in several pulse-pounding (yet more approachable, but just as thrilling) mini-games inspired by the #1 Netflix series. Play again and again to experience and master all-new games and challenges. |
| Seekers of the Shard: Dragonfire - Images available HERE | Journey through a world of fantasy and explore a ruined fortress, an underground river, a haunted tomb and the dragon's tower as you become Seekers of the Shard. |
| Deadwood Valley - Images available HERE | Engage in an adrenaline-pumping thrill-ride through a town overrun by zombies. Your squad could stop the zombie menace forever - or die trying! |
| Deadwood Mansion - Images available HERE | Do you have what it takes to survive a zombie apocalypse? Work with your team to protect Deadwood Mansion from a terrifying horde of undead. |
| Curse of Davy Jones - Images available HERE | Battle on the high seas against a variety of supernatural creatures and hunt for the long-lost treasure of Davy Jones. |
| Amber Sky 2088 - Images available HERE | Become heroic Androids equipped with futuristic weapons and soar through the clouds on a space elevator while defending Earth from an alien invasion. |
| UFL: Unbound Fighting League - Images available HERE | Transform into a futuristic gladiator and compete against your friends in thrilling duels in a breathtaking arena beyond the limits of reality. |
To learn more about Sandbox VR franchise opportunities, please visit https://franchise.sandboxvr.com
Hashtag: #SandboxVR
https://sandboxvr.com/
https://www.linkedin.com/company/sandboxvr
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Sandbox VR
Sandbox VR is the world's premier destination for premium, location-based virtual reality games. The company has created the world's most immersive full-body VR platform and boasts exclusive games, including original and branded experiences, such as Squid Game Virtuals, created in collaboration with Netflix. Now operating in 54 locations and attracting over 100k players monthly, Sandbox VR is rapidly growing its global footprint with thriving corporate-owned locations and a robust franchising program.
The company has been recognised as one of Fast Company's 2024 Most Innovative Companies and is the 129th fastest-growing company in America on the 2024 Inc. 5000 list. Sandbox VR is headquartered in San Francisco, California with offices in Hong Kong and Vancouver. The company has raised over US$60 million from investors, including Andreessen Horowitz, Alibaba Entrepreneurs Fund, Gobi Partners, and Craft. Individual investors include Justin Timberlake, Katy Perry, Kevin Durant and Will Smith.
About Gobi Partners
Gobi Partners is an Asia-focused venture capital firm with US$1.6 billion in Assets Under Management (AUM). Headquartered in Kuala Lumpur and Hong Kong, the firm supports entrepreneurs from the early to growth stages and focuses on emerging and underserved markets.
Founded in 2002, Gobi has raised 21 funds and invested in over 380 startups, with 62 operating in the Circular Economy. Gobi has grown to 15 locations across key markets in Bangkok, Beijing, Dhaka, Guangzhou, Ho Chi Minh City, Hong Kong, Jakarta, Karachi, Kuala Lumpur, Lahore, Manila, Shanghai, Shenzhen, Singapore and Tianjin.
As a Participant in the United Nations Global Compact, Gobi Partners is committed to aligning strategies and operations with universal human rights, labour, environment, and anti-corruption principles to ensure long-term value creation and sustainability across its portfolio. The firm launched its third Sustainability Report in June 2024.
For more information about Gobi Partners, please visit https://gobi.vc
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