Sandbox VR Inc.

Sandbox VR Inc. is a leading location-based virtual reality (VR) entertainment company, founded in 2016 by Steve Zhao. Headquartered in San Francisco, California, the company's mission is to bring people closer together through world-class immersive experiences. [20, 24]

Sandbox VR offers multiplayer, full-body VR experiences at physical venues, utilizing proprietary and patented technology that combines full-body motion capture and high-quality haptics for unprecedented realism. Their offerings include exclusive experiences developed by an in-house AAA studio, as well as licensed content through partnerships, notably with Netflix for experiences like "Squid Game Virtuals" and "Stranger Things: Catalyst." These experiences are designed for groups of up to six participants, allowing them to interact physically within virtual worlds. [3, 4, 8, 13, 25, 27, 31]

Under the leadership of CEO Steve Zhao, Sandbox VR has established itself as a significant player in the VR entertainment market. The company has raised over $119 million in funding from notable investors including Andreessen Horowitz, Alibaba, Justin Timberlake, and Kevin Durant. By March 2026, Sandbox VR had surpassed $300 million in lifetime revenue, operating over 80 venues globally and serving nearly 150,000 guests monthly. The company continues to expand its footprint, with plans to open approximately 200 franchise locations by the end of 2027. [1, 2, 4, 8, 20, 31]

Latest updates

Sandbox VR Accelerates Expansion with New East Coast Franchises

Event summary

  • Sandbox VR is opening two new location-based VR venues in Washington, D.C. and Baltimore, in partnership with LOL Entertainment.
  • The expansion brings Sandbox VR’s total global locations to over 80, across five continents and 12 countries.
  • Sandbox VR has achieved $300 million in lifetime sales and attracts approximately 150,000 players monthly.
  • LOL Entertainment already operates Sandbox VR locations in Philadelphia and Houston.
  • The company has raised over $138 million in funding from various investors, including Andreessen Horowitz and Alibaba Entrepreneurs Fund.

The big picture

Sandbox VR’s expansion highlights the growing demand for immersive, group entertainment experiences, particularly as consumers seek alternatives to traditional leisure activities. The partnership with LOL Entertainment demonstrates a scalable franchise model, but also introduces dependencies on external operators. The company’s valuation, supported by significant investor backing, will be increasingly tied to its ability to maintain high occupancy rates and generate consistent revenue across its global network.

What we're watching

Franchise Model
The success of LOL Entertainment’s operational excellence will be critical to Sandbox VR’s continued expansion and profitability, as the franchise model represents a significant portion of their growth strategy.
Content Pipeline
The reliance on licensed content (Stranger Things, Age of Dinosaurs) exposes Sandbox VR to potential IP risks and necessitates a robust pipeline of original experiences to maintain customer engagement.
Market Saturation
With over 80 locations globally, Sandbox VR will need to demonstrate continued demand and avoid cannibalization as it expands further into established markets like the East Coast.
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