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Varjo

Varjo Technologies Oy is a founded in 2016 and headquartered in , specializing in the design and manufacture of high-resolution (VR), (AR), and mixed reality (XR) headsets for professional and industrial applications. The company's products emphasize photorealistic visuals at human-eye resolution, eye-tracking capabilities, and low-latency performance, enabling immersive experiences that bridge digital and physical environments for use in simulation, training, design, and research. Established by a team of experienced executives from and , including co-founders Urho Konttori (CTO), Niko Eiden, Klaus Melakari, and Roope Rainisto, with Timo Toikkanen as CEO, Varjo has positioned itself as a leader in enterprise-grade XR solutions. With over 200 employees as of 2025, the company has secured substantial funding, including investments from the and firms, to advance its hardware and software ecosystem. Varjo's innovations have been adopted in sectors such as , automotive, , and scientific , where its headsets support mission-critical tasks like pilot training and product prototyping. Among its flagship offerings, the Varjo XR-4 series stands out as the world's highest-resolution headsets, featuring integrated hand tracking, video pass-through, and secure editions compliant with standards like TAA for government use. Earlier models, such as the XR-3 and VR-3, have been pivotal in establishing Varjo's reputation for ultra-realistic immersion, though general support for third-generation headsets will end on January 1, 2026 to focus on newer advancements. Complementing the hardware, Varjo provides software like Varjo Base for setup and management, along with tailored to . The company's vision centers on revolutionizing immersive computing by merging real and digital worlds seamlessly, with ongoing partnerships enhancing applications in training and .

History

Founding

Varjo was established in 2016 in , , by a team of executives with extensive experience at major technology companies. The founders, including Urho Konttori, Klaus Melakari, Niko Eiden, and Roope Rainisto, drew from their prior roles at and to address key shortcomings in existing (VR) technology, such as insufficient resolution and limited that hindered professional use. Their vision centered on creating industrial-grade (XR) solutions that achieved human-eye resolution, targeting applications in enterprise and professional environments rather than consumer gaming. The company set up its headquarters in , leveraging the region's strong tech ecosystem to assemble an initial team primarily from alumni networks of and , which provided deep expertise in immersive technologies and hardware development.

Key developments and milestones

Varjo's early development phase featured prototype demonstrations in 2017, showcasing its innovative foveated display technology that combined high-resolution microdisplays with standard VR optics to achieve human-eye resolution in a central field of view. These prototypes, initially integrated with modified Oculus Rift headsets, were demoed to industry press and at events like Slush in Helsinki, highlighting potential applications in professional VR for design and simulation. The company launched its first commercial product, the VR-1 headset, on February 19, 2019, marking the debut of industrial-grade VR hardware capable of delivering photorealistic visuals for enterprise use in sectors like and . Later that year, on October 15, 2019, Varjo released the VR-2 and VR-2 Pro models, which incorporated SteamVR compatibility, integrated eye and hand tracking, and enhanced bionic display features for broader professional workflows. Expansion into mixed reality began in 2019 with the announcement of the XR-1 Developer Edition on May 29, featuring video pass-through cameras for photorealistic /XR integration, enabling developers to blend virtual elements with real-world environments indistinguishably. The headset entered commercial availability in December 2019, accelerating adoption in and collaborative applications across industries. This shift was supported by international growth efforts, including the opening of Varjo's US headquarters in , , in September 2019, alongside expanded reseller networks and shipping to markets like to bolster global presence. In recent years, Varjo has focused on advancing simulation technologies. On July 17, 2025, the company announced the end of general support for its third-generation headsets, including the XR-3, VR-3, and , effective January 1, 2026, to prioritize newer products like the XR-4 series. Earlier that year, on March 18, 2025, Varjo was recognized in Fast Company's list of the World's Most Innovative Companies in the augmented and category, acknowledging its contributions to XR immersion. On October 8, 2025, Varjo refreshed the XR-4 Series headsets, optimized for mission-critical training in and with AI-enhanced passthrough, higher-resolution cameras, and seamless into and vehicle simulators for air, land, and sea applications. This update extends support for the series through 2030, emphasizing durability and photorealism in high-stakes environments. On October 15, 2025, Varjo announced an of over €40 million in next-generation technologies, supported by significant from Business . On November 3, 2025, the company released Varjo Base 4.13, introducing new features and improvements for and XR software management.

Leadership

Founders

Varjo was co-founded in 2016 by four professionals with extensive backgrounds in technology development at major firms like and , each bringing specialized expertise to the company's early focus on high-fidelity hardware and software. Niko Eiden, a co-founder, contributed to the company's vision for advanced display technologies, drawing from his background in . Prior to Varjo, Eiden served as CEO of Pixieray, a optics firm, and held engineering roles at for over 16 years, where he led product programs involving display innovations. He holds a degree in from (now part of ). Klaus Melakari, another co-founder, focused on hardware engineering and served as the company's initial . With over 20 years of experience in research and development, system design, and technology leadership, Melakari previously headed computational vision systems at . He earned an M.Sc. in from the . Roope Rainisto, co-founder and inaugural , led efforts in and intellectual property strategy, leveraging his expertise in . Rainisto amassed over 40 patents during his time at and , where he worked as a principal designer on mobile and immersive technologies. He holds an M.Sc. in Information Networks from . Urho Konttori, co-founder and former , drove product innovation from the outset, shaping Varjo's hardware-software integration for professional applications. With more than 20 years as a product innovator and program manager, Konttori contributed to large-scale projects at and , including over 10 patents in mobile and XR technologies. He earned a B.Sc. in Algorithms from the .

Current executive team

As of November 2025, Varjo's executive team is led by Timo Toikkanen, who has served as CEO since August 2020 after joining as an investor and board member in 2018. Toikkanen brings over 25 years of experience in technology leadership, including various executive roles at starting in 1995, where he focused on business strategy, international expansion, and scaling innovative tech ventures, with a particular emphasis on driving XR adoption in professional markets. Patrick Wyatt serves as , a role he assumed in July 2022 to oversee the company's product roadmap, , and hardware innovations in and XR. Wyatt's background includes senior product leadership positions at health tech firm , delivery platform , and advertising giant , where he specialized in building scalable tech products for global consumer and enterprise applications. Mikko Luhtava is the Chief Marketing Officer, responsible for global marketing strategies and promoting Varjo's immersive technologies to enterprise customers. Luhtava holds a Master of Science in Marketing from Aalto University and has built his career within Varjo since its early days, gaining expertise in tech marketing tailored to VR, AR, and XR solutions for industries like aerospace and automotive. Supporting operations, Vesa Haukkavaara has been since October 2022, managing day-to-day efficiency and strategic alignment across functions. Haukkavaara previously spent 14 years at in consulting roles focused on technology and operations for firms. Antti Koponen joined as in May 2024, handling financial planning, funding, and . His prior experience includes serving as CFO at IoT company Wirepas and various finance leadership positions at TNS Group and other tech firms, emphasizing growth-stage financial strategy.

Products

Virtual reality headsets

Varjo's virtual reality headsets are engineered for professional applications, emphasizing ultra-high resolution displays that approach human-eye fidelity, advanced eye-tracking for precise interactions, and robust compatibility with ecosystems. These devices target industries requiring photorealistic immersion, such as simulation training and design visualization, with optimized for extended use without compromising visual clarity or comfort. The company's inaugural VR headset, the Varjo VR-1, launched in February 2019 as the first commercial device to achieve over 60 pixels per degree (ppd) resolution across a wide , marking a significant leap in VR visual fidelity for workflows. It features a Bionic Display combining a central high-resolution micro-OLED panel (1920 × 1080 pixels) with peripheral low-persistence panels (1440 × 1600 pixels per eye) for seamless edge-to-edge clarity, paired with integrated 20/20 eye-tracking at sub-degree accuracy to enable gaze-based interactions and support. While primarily reliant on SteamVR base stations for 6DoF positional tracking, the VR-1's design prioritizes professional-grade durability, including adjustable optics and a modular for prolonged sessions in controlled environments. Priced at $5,995, it set the benchmark for VR by delivering 20 times the of consumer headsets at the time. As of 2025, general support for third-generation headsets (VR-3, XR-3, ) ends on January 1, 2026. In October 2019, Varjo introduced the VR-2 and VR-2 , building on the VR-1 with enhancements to and user customization for broader professional adoption. The VR-2 provides a horizontal of 87 degrees while maintaining over 60 ppd in the central foveal region through its dual-display Bionic system, and it integrates SteamVR compatibility for seamless tracking with external base stations. The VR-2 variant adds automatic interpupillary distance (IPD) adjustment via motorized lenses, allowing real-time adaptation to individual users for sharper focus without manual tweaks, alongside upgraded hand-tracking capabilities using cameras for controller-free interactions in simulations. Both models support 90 Hz refresh rates and eye-tracking at 100 Hz, emphasizing low-latency performance for tasks like virtual prototyping, with the version priced at $6,000 to reflect its advanced and enterprise-focused features. The Varjo VR-3, released in December 2020, advanced eye-tracking and rendering capabilities to further mimic human vision in professional setups. It achieves over 70 ppd with a 115-degree , utilizing full-frame Bionic Displays (2880x2720 pixels per eye) that enable uniform high fidelity without peripheral distortion. Key upgrades include 200 Hz eye-tracking with sub-degree precision for dynamic , which optimizes GPU resources by rendering full detail only where the user gazes, improving frame rates in complex scenes like architectural walkthroughs. The headset incorporates inside-out tracking via integrated cameras, eliminating the need for external base stations in many scenarios, and supports automatic IPD adjustment alongside hand-tracking for intuitive, untethered professional use. At a launch price of $3,195, the VR-3 democratized access to these features while maintaining compatibility with high-end PCs for demanding simulations. Varjo Aero, announced in October 2021 and released in early 2022, shifted focus toward lightweight, versatile design for simulation-heavy professional environments. Weighing just 487 grams without the , it features dual mini-LED displays at 2880x2720 pixels per eye and 35 ppd peak , delivering 90 Hz refresh rates with a 102-degree horizontal for immersive yet comfortable extended wear. The headset supports inside-out tracking through SteamVR or standards, ensuring broad open-source compatibility with tools like and for custom simulation development. Eye-tracking at 100 Hz enables and gaze interactions, while its active cooling and adjustable halo prioritize for users in fields like . Priced at $990 for the base unit, Aero made high-fidelity VR more accessible without sacrificing professional precision.

Mixed reality headsets

Varjo entered the market with the XR-1 Developer Edition, released in December 2019, marking the company's first headset to incorporate color video passthrough for photorealistic blending of virtual and real elements. This device utilized dual 12-megapixel cameras to deliver low-latency passthrough under 15 milliseconds, enabling seamless hybrid reality experiences with natural supported by integrated depth sensors. The XR-1 also featured human-eye exceeding 60 pixels per degree (PPD) in the foveal area, allowing developers to switch between fully immersive and modes for applications in design, training, and research. Building on this foundation, Varjo launched the XR-3 in December 2020, introducing advanced depth sensing via an integrated scanner that enhanced spatial mapping and environmental interaction in environments. The headset achieved human-eye resolution of 70 PPD per eye across a 115-degree , paired with pixel-perfect RGB passthrough cameras for high-fidelity real-world . Additional features included inside-out tracking, 200 Hz , and Ultraleap hand tracking, facilitating precise hybrid reality applications such as collaborative simulations and augmented workflows without external base stations. The enabled accurate depth awareness, allowing virtual objects to interact realistically with physical surroundings, such as proper and . The Varjo XR-4 Series, announced in November 2023, further advanced capabilities with a Focal Edition that incorporated inside-out tracking and gaze-driven passthrough cameras, achieving up to 51 PPD resolution for sharper real-world integration. This edition utilized 20+ megapixel stereo cameras and a 300 kpix extended-range —eight times more powerful than the XR-3's—for superior depth sensing and hybrid reality rendering, supporting a 120° x 105° . In October 2025, Varjo refreshed the series with a 2026 Edition optimized for defense simulations, featuring improved low-light passthrough through a dedicated Night Mode and AI-enhanced processing for realistic nighttime operations in training scenarios like and simulators. These updates also included advanced hand and ambient light sensors, ensuring seamless blending of virtual elements with real-world interactions in low-visibility conditions. As of 2025, general support for third-generation headsets (VR-3, XR-3, ) ends on January 1, 2026.

Software and accessories

Varjo Base serves as the primary companion for managing Varjo headsets, providing tools for device , firmware updates, performance diagnostics, and secure operation in professional environments. It supports features such as eye tracking , multi-monitor setup, and integration with external tracking systems, ensuring optimal functionality across and XR applications. In 2025, Varjo Base received significant updates, including version 4.13, which introduced Night Mode for simulating low-light conditions in training scenarios, enhanced hand tracking with improved occlusion handling, and vivid video pass-through for sharper real-world integration. These enhancements, released in October 2025, also added command-line controls and predictive foveation to reduce latency and improve visual fidelity. For and development, Varjo provides Varjo Lab Tools alongside SDKs tailored for /XR app development and authoring. Varjo Lab Tools enables advanced real-time adjustments, such as custom masking for passthrough—using static, depth-based, or marker modes—to blend virtual elements with the physical environment seamlessly. Complementing this, the Varjo Native SDK, XR SDK, and plugins facilitate high-fidelity , supporting eye and hand tracking data integration, multi-user sessions, and photorealistic rendering optimized for human-eye resolution. These tools allow developers to author immersive without requiring a physical headset initially, through software modes. Accessories enhance headset precision and compatibility, including SteamVR 2.0 base stations for external positional tracking, which use laser-based sweeping to achieve sub-millimeter accuracy in large play areas—up to four stations recommended for full-room mobility. The Varjo Tracking Plugin SDK extends this with modules for integrating third-party tracking systems like OptiTrack or , enabling hybrid setups for specialized simulations. Integration kits, such as pre-configured and Unreal assets, streamline workflow by providing plug-and-play support for headset sensors and rendering pipelines. In 2025, Varjo enhanced its SDK ecosystem for applications, bolstering secure, offline-capable for mission-critical simulations, incorporating features like encrypted data handling and compatibility with military-grade hardware refreshes.

Funding and

Funding rounds

Varjo has raised over $231 million in total across numerous rounds as of late 2025. The company's early funding began with a of $8.2 million in September 2017, led by EQT Ventures, to support the development and initial shipping of its high-resolution VR prototypes. In November 2017, Varjo secured an additional $6.7 million in debt financing from industry investors to accelerate prototype production and partnerships. Subsequent rounds included a $31 million Series B in October 2018, led by Atomico, which brought total funding to approximately $46 million and enabled team expansion from 80 to over 200 employees. This was followed by a $54 million Series C in August 2020 from a mix of new and existing investors, pushing cumulative funding past $100 million to fuel international growth in industrial XR applications. In December 2021, the provided up to €20 million (approximately $22.6 million) in venture debt financing to support Varjo's growth in virtual and mixed reality technologies. A key later round was the $40 million Series D in September 2022, led by with participation from Atomico, Tech Fund, Lifeline Ventures, and Tesi, aimed at building an industrial platform. In August 2025, Varjo closed a convertible note of €5 million (approximately $5.82 million) from defense firm THEON International, with an option for an additional €5 million, to enhance XR realism. Shortly after, in October 2025, Business awarded a €12 million to support R&D in next-generation technologies, including XR-4 series advancements. These events have driven increases, particularly following major product launches like the XR headsets, reflecting growing investor confidence in Varjo's enterprise XR leadership.

Major investors and partnerships

Varjo has attracted significant investment from prominent firms, including EQT Ventures, which has participated in multiple rounds to support the company's expansion in professional XR technologies. Atomico led Varjo's Series B in and continued as a key backer in subsequent rounds, focusing on applications of high-resolution . Beyond Capital joined as a new investor in a 2024 funding extension, contributing to advancements in and XR content creation solutions. Among corporate investors, invested in Varjo's Series D round in 2022, positioning itself as a potential partner to scale of XR hardware. acquired a minority stake in November 2024, enhancing hardware integration through GPU-powered features and support for in Varjo's headsets. The Tech Fund has provided strategic investment across rounds, emphasizing automotive applications such as design and simulation workflows. Key strategic partnerships include a €5 million from THEON in August 2025, aimed at accelerating military-grade /XR for simulations. Varjo maintains collaborations with for replicating commercial crew mission phases in high-fidelity environments. Similarly, a longstanding partnership with integrates Varjo's XR headsets with Prepar3D software for advanced pilot training and mission readiness simulations. These partnerships have driven joint R&D efforts in and sectors, enabling customized XR solutions for high-stakes and operational efficiency. For instance, integrations with NVIDIA's technologies have facilitated real-time ray tracing and photorealistic rendering in simulations.

Applications and impact

Industries and use cases

Varjo's technology finds extensive application in the and sectors, where high-fidelity virtual and simulations enable pilot training and mission planning. In , immersive XR environments support procedural drills, simulations, and full mission rehearsals, allowing crews to practice complex flight operations in realistic conditions without the risks associated with live flights. Defense applications leverage and for immersive training scenarios, including vehicle operations, gunnery, and threat response, enabling remote and scalable preparation for operational environments. In the , Varjo's headsets facilitate design reviews, factory planning, and through virtual prototyping workflows. Designers and engineers use photorealistic VR to visualize and iterate on models in , overlaying digital assets onto physical prototypes for rapid modifications and collaborative assessments. This approach streamlines the development process by minimizing the need for physical mockups and enabling precise evaluations of , aesthetics, and layouts. The engineering and research fields benefit from Varjo's tools in CAD modeling, scientific visualization, and specialized training, including medical simulations. Engineers employ XR for immersive interaction with complex 3D models, enhancing precision in design and analysis tasks across disciplines like mechanical and architectural engineering. In research settings, the technology supports academic and clinical studies by providing high-resolution virtual environments for behavioral experiments, data visualization, and immersive learning, such as anatomical modeling for medical education to reduce cognitive load during training. Maritime applications of Varjo's XR solutions include ship and simulations, where crews rehearse , bridge operations, and procedures in lifelike virtual seas. These simulations replicate real-world conditions like weather variability and handling, supporting both and naval to improve and without requiring full-scale physical models. Emerging uses of Varjo's technology in 2025 encompass XR for remote and prototypes in metaverse-like environments. Platforms like Teleport enable 3D reconstructions of real-world sites for distributed teams to conduct virtual walkthroughs, inspections, and progress tracking, fostering seamless remote workflows in fields like and . Additionally, advancements in photorealistic avatars and hand-tracking integration are prototyping immersive metaverse interactions, allowing natural, device-free engagement in shared virtual spaces for collaborative innovation.

Notable customers and achievements

Varjo has established partnerships with several prominent organizations across aerospace, defense, and automotive sectors. Boeing utilizes Varjo's VR headsets for advanced astronaut training simulations in the Starliner program, enabling remote preparation for spaceflight missions with high-fidelity replication of orbital environments. Lockheed Martin collaborates with Varjo to integrate XR technology into Prepar3D simulations, enhancing pilot readiness through mixed reality training scenarios for defense applications. Varjo's VR/XR solutions are used in NASA-related programs, such as Boeing's Starliner for astronaut training simulations, supporting immersive environments in space exploration studies. In the automotive industry, Volvo employs Varjo's headsets for design validation and safety assessments, accelerating development processes with mixed reality overlays. A notable case study involves 's implementation of Varjo's XR technology for factory floor planning and safety evaluations. By integrating the XR-4 series, Volvo engineers can visualize and iterate on production layouts in real-time , identifying potential hazards and optimizing workflows without physical prototypes, which has reduced design cycles and improved safety protocols in environments. Varjo's achievements underscore its leadership in professional XR. In 2025, the company was recognized on Fast Company's list of the World's Most Innovative Companies for advancements in and AR technologies. Varjo's solutions are adopted by over 25% of 100 companies and numerous enterprises globally across industries like and . In June 2025, Varjo's XR technology powered the first-ever EASA-qualified developed by Brunner, advancing certification standards for immersive . In October 2025, Varjo launched headsets purpose-built for across air, land, and sea domains, further expanding applications in and . Furthermore, Varjo contributes to XR standards by achieving official 1.0 compliance for its XR-4 series, facilitating interoperability in professional applications.

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