AI Undermines VR Modding Moat; Critique of Crowdfunded Strategy

Scobleizer · x · 2026-08-15

Scobleizer comments on the VR industry, arguing that until AI can generate mind-blowing content, VR will remain a niche, making customer-funded financing smart. Regarding a team's crowdfunded investment, he notes that AI is undercutting their core skill of modding games into VR, dissolving their moat. He suggests scaling down is often best when moats vanish, though difficult with prior investors at higher valuations. He also questions the lack of a Form C to disclose prior securities and ownership terms.

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