Consumer Investment Shifts Toward AR/AI Entertainment

According to a report by CHINA Star Market, August data shows that consumer

investment in embodied intelligence is rapidly shifting toward applications of VR/AR

and AI technologies in the consumer sector. Companies developing AI interactive

toys, AR glasses, XR immersive experiences, and integrated smart terminals built

around these technologies have seen a surge in funding. In contrast, sectors such as

local services and e-commerce remain at relatively low levels of investor attention.

With the summer travel peak season coming to an end, outdoor sports and tourism-

related companies have also seen investment activity fall sharply from a few deals

per month to almost none.

Specifically, within the technology-driven consumer entertainment space led by AR

and AI, a total of 10 companies secured financing in August. In AI toys, Haivivi and

Artificial Productivity both launched first-generation companion AI products targeting

the children’s market. AR consumer hardware emerged as a hot track this month,

with TCL RayNeo, ARKNOVV, JUEYUAN, Meta-Bounds all receiving funding. Each

has introduced its own smart glasses products, creating an increasingly competitive

landscape. From a financing perspective, August marked a shift away from the

traditional concentration on early-stage rounds. The share of Series B, equity, and

strategic investments increased significantly.

Notably, equity investment deals reached 15 cases, surpassing Series A for the first

time, with most projects in food & beverage retail, trendy IP, and health consumption.

Series B funding also hit a new high, with deal sizes ranging from tens of millions to

over 100 million CNY, especially concentrated in AR, robotics, and digital marketing

firms. In terms of regional distribution, Guangdong and the Yangtze River Delta

remain hotspots for venture capital. Shanghai saw the highest number of funded

projects in August, mainly in food & beverage, alcoholic drinks, and IP-driven

consumer goods. Shenzhen accounted for most of Guangdong’s deals, with

investments focused on smart glasses, AI toys, and supply chain-related enterprises,

supported by the region’s robust manufacturing ecosystem