Epitone Secures New Investments for AR Platform Development

FI fund inflow imminent following participation of SI investors Shinwha Intertek and SoluM

Epitone, a leading developer of augmented reality (AR) solutions, is making significant strides in securing domestic investments. Following strategic investments from Hyosung Group's affiliate Shinwha Intertek and display specialist SoluM, Epitone is now looking to attract financial investors (FIs).

According to Investment Bank (IB) industry insiders, Epitone is currently negotiating to secure approximately $20 million (about 27 billion KRW) from financial investors. Epitone is currently undergoing qualification (quality certification) to supply AR head-up displays (HUD) for vehicles to European automakers. Additionally, it has been reported that a global automaker is considering a strategic investment in Epitone.

As there are concerns about share dilution due to the succession of strategic investors (SI) joining, there appears to be a need to attract domestic FIs to expand friendly shares. With large-scale supply deals on the horizon, securing development funds is also a critical priority.

Epitone is a company founded in 2021 by CEO Hong Sunghoon, who served as an executive in the AR technology development division at Samsung Electronics Advanced Technology Institute. A corporation was established in the United States to target the global market. Epitone provides comprehensive solutions, including software, hardware, and optical technology necessary for AR implementation, to Big Tech (large information technology companies), set (finished product) companies, and automobile companies.

Epitone’s initial funding in its founding year included $20 million from Hyosung Group’s holding company and its display film subsidiary, Shinwha Intertek. Last year, SoluM joined as an investor, committing $10 million through a strategic partnership for the development and production of automotive HUDs.

Since its inception, Epitone has focused on developing solutions that merge mobility and AR platforms, targeting the future automotive market. The business is expected to get back on track as early as next month with the announcement of collaboration with a global automaker. Cooperation with SoluM was also for this purpose. SoluM is drawing for a business model that produces vehicle displays, equips them with Epitone's AR-based HUD solution, and supplies them to original equipment manufacturers (OEMs).

The AR HUD developed by Epitone utilizes the entire front display of the vehicle to implement AR that shows the vehicle's speed, location, and gap to the left, right, and front car in real time. Risk factors across the road are also provided in three-dimensional (3D) AR. It is expected that 'Smart Film', an optical film for AR from Shinwha Intertek, which previously invested in Epitone, will be installed. Epitone are also seeking cooperation with domestic and overseas tier 1 (primary partners).

The IB industry estimates Epitone's valuation to be approaching $200 million, reflecting its growing influence and technological advancements.

A spokesperson from Epitone remarked, "Epitone has been committed to developing technology that utilizes the entire windshield as a display to create a true 'smart car.' As Epitone prepares for mass production with a major global automaker, Epitone is seeking additional domestic investment to support this expansion."

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About Epitone Inc. : Epitone Inc. is a pioneering company in the field of automotive augmented reality. Established in November 2021, Epitone aims to revolutionize how drivers interact with their vehicles through its flagship product, LiveWindow, a compact mirrorless AR head-up display system. Epitone's innovative solutions enhance driving safety and focus by allowing drivers to concentrate on the windshield without distractions from traditional infotainment displays.

The above article is an English translation of an article published in Korean.

The original article is as follows:

https://www.thebell.co.kr/free/content/ArticleView.asp?key=202406161038296720103152