A UK startup just raised £2 million to build virtual reality games

Ndreams, a UK-based games company, has raised £2 million ($3 million) from Mercia Technologies.

The money will be used to build immersive games for virtual reality headsets, such as Samsung’s Gear VR, according to the company.

Virtual reality is a fully immersive experience that differs from augmented reality — or mixed reality — which puts virtual things on the real world.

Ndreams was founded in 2006 by Patrick O’Luanaigh, a former Codemasters executive who worked on games including “Hitman” and “Tomb Raider.” Its latest funding round follows a £250,000 ($380,000) investment made in early 2014.

The company is currently developing “The Assembly,” an adventure game designed to work on high-end virtual reality headsets.

“This additional investment allows us to extend our capabilities as a publisher and accelerate our efforts as we head into 2016,” O’Luanaigh said in a press release. “With these new hires, we’ve raised the bar in terms of our studio’s skillset, knowledge base and quality of our future output.”

The company is looking at building more games for virtual reality headsets and has hired various executives from other gaming companies, such as PlayStation and Rockstar Games, the studio behind “Grand Theft Auto.” Oculus, which was bought by Facebook for $2 billion (£1.3 billion) last year, has its Rift headset, set to launch in 2016, and HTC has its Vive headset.

The investment will be divided into two £1 million ($1.5 million) lumps, according to the company.

Digi Capital, a research firm, estimates that the virtual reality market will be worth $30 billion (£20 billion) by 2020, driven primarily by gaming.

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