Zero Latency
Zero Latency is a leader in the location-based virtual reality (VR) entertainment industry, licensing free-roam VR hardware and software to global venues.
Need
To prepare for further growth and expand its operations, Zero Latency sought additional debt funding to overcome some of the unique challenges that businesses face when scaling quickly and operating in a global market.
Solution
We provided loans to support Zero Latency's funding, enabling the business to invest with confidence in content development, marketing and brand awareness.
As the demand for free-roam VR entertainment offerings grow, Zero Latency has been expanding its network of venues globally and developing new games to release to its licensees. However, scaling a business in a fast-moving sector requires significant financial investment, which is where we were able to support.
Zero Latency was a pioneer of the free-roam, multiplayer VR industry in 2015. The Melbourne-based business creates, develops and operates its own VR systems and games, which it licenses to venue operators around the world. Its immersive VR experience allows customers to explore digital worlds by walking, running and jumping in any of its current library of eight different games.
Much like the bowling alleys, pool halls and karaoke bars that many people might be more familiar with, customers travel from all around to visit Zero Latency’s expansive venues to have fun with their friends and family.
We wouldn't have been able to position the business for the growth that we're expecting to see over the course of 2024 and beyond if it wasn't for Export Finance Australia’s funding.
Glenn Johnson
Chief Financial Officer, Zero Latency
Scaling to maintain rapid global growth
After opening its first venue in North Melbourne in 2015, Glenn Johnson, Zero Latency’s Chief Financial Officer, explained that “international expansion was rapid” with its next venues quickly opening across Singapore, Spain and the US.
“In the past 18 to 20 months alone, we’ve seen near 60-70% growth in our network to where we are now approaching having 100 venues open globally,” he said.
“Beyond this, we've got a forward order book of around 35 venues that have been signed up with new licensees, meaning we're on track to have close to 120 venues by the end of the 2024 calendar year.”
With its entry to the global market almost immediately following its inception, the rapid pace of Zero Latency’s early success meant that there needed to be a strong investment to bolster its fast-growing worldwide network of venues.
Unlocking latent potential
We were able to provide the business with a term loan, which provided the necessary financial support Zero Latency required to maintain its growth. This enabled the business to purchase components for its systems, develop new gaming content (a process that can cost between $1 and $1.5 million per new title) and significantly boost its accompanying marketing and branding strategies.
It also meant that Zero Latency had the capacity to research new projects to expand its global network even further, including its new offering of six-player arenas. The new arena size allows venues around the world to more easily add Zero Latency to their attraction lineup as it is a more scalable solution that still maintains the high quality of its unique product.
Our support not only provided financial stability but also added credibility to Zero Latency's business model. This backing proved invaluable when the business was negotiating with new licensees and stakeholders, demonstrating its financial robustness and potential for growth.
Digital pathways to organic growth
As Zero Latency looks to the future, Glenn explained that the team is planning to continue its global expansion and in-venue ticket sale growth, spearheaded by exciting new content releases, marketing strategies, and a new global website and booking platform.
But this growth would not have been achievable without our support, which Glenn described as “very, very, very important” to the business’s expansion.
“We wouldn't have been able to really position for the growth that we're expecting to see over the course of 2024 if it wasn't for that funding."
With our continued support, Zero Latency is well-positioned to take on these new challenges and opportunities worldwide.
