Spatial Computing thesis

tl;dr

Spatial Computing transforms industries like education, real estate, and gaming with immersive AR/VR experiences and spatial interactions. Dwarves can co-build infrastructure and application solutions with startups, like AR/VR APIs and immersive training tools, while internally enhancing workflows, with experiments targeting scalable productivity and engagement platforms.

Introduction

Spatial Computing, encompassing augmented reality (AR), virtual reality (VR), and mixed reality (MR), enables immersive experiences and spatial interactions by blending digital and physical worlds. By 2025, Spatial Computing is poised to revolutionize startup innovation and Dwarves’ operations, delivering interactive, context-aware solutions through advanced infrastructure and applications. Imagine an edtech startup using AR to create interactive learning environments or Dwarves enhancing remote collaboration with VR workspaces. Spatial Computing’s ability to redefine user engagement aligns with Dwarves’ mission to co-build with startups and optimize internal processes.

Market data highlights its growth: the global AR/VR market is projected to reach $1.1 trillion by 2030, with a 30% CAGR from 2023 (Grand View Research). Venture funding for Spatial Computing startups reached $8 billion in 2024 (PitchBook). Spatial Computing aligns with Dwarves’ verticals, team/individual productivity, community building, liquidity/fund engineering, and IP, by enhancing collaboration, engagement, financial visualization, and digital assets, while offering opportunities in external industries like education, real estate, and gaming.

For startups: Spatial Computing empowers startups to create immersive experiences, from virtual training platforms to interactive retail, enabling differentiation in competitive markets. A real estate startup, for instance, could use AR to offer virtual property tours, boosting sales.

For Dwarves: Internally, Spatial Computing can transform operations by enabling immersive collaboration, visualizing financial data, and protecting digital IP, allowing the firm to deliver high-value consulting services with innovative tools.

1. Understand the technology

Spatial Computing integrates AR, VR, and MR technologies to create immersive, interactive environments where digital content overlays or replaces the physical world. It leverages spatial awareness to enable context-driven user experiences, redefining how we interact with data and spaces.

Origin layer: Spatial Computing evolved from early VR experiments in the 1960s, with significant advancements in the 2010s driven by Oculus Rift and Microsoft HoloLens. The rise of 5G, improved sensors, and powerful GPUs accelerated adoption. Growing demands for remote collaboration, immersive entertainment, and digital twins in industries like education and real estate fueled its growth. By 2024, platforms like Apple Vision Pro and Meta Quest democratized access, spurring innovation.

Technical layer: Spatial Computing relies on hardware (headsets, sensors) and software (AR/VR frameworks, 3D engines). It uses computer vision, spatial mapping, and haptics, with platforms like Unity, Unreal Engine, and ARKit enabling development. APIs facilitate integration with cloud services and IoT.

• Key components:
  • Headsets: Display immersive visuals, for AR/VR experiences.
  • Sensors: Track motion and spatial data, for precise interactions.
  • Spatial mapping: Create digital twins of physical spaces.
  • 3D engines: Render real-time graphics, for immersive environments.
  • APIs: Integrate with cloud, AI, and IoT systems.

Core concept: Spatial Computing’s purpose is to blend digital and physical worlds, enabling immersive, context-aware interactions through AR, VR, and MR technologies for enhanced user experiences and workflows.

Abilities:

• Immersive visualization, for training or design.
• Spatial interaction, for gesture-based controls.
• Real-time collaboration in virtual environments.
• Digital twins for physical space simulations.
• Context-aware content delivery, for personalized experiences.

What it’s good at: Spatial Computing excels in creating immersive, interactive experiences that enhance engagement and productivity. It enables startups to offer innovative applications like virtual showrooms and Dwarves to streamline collaboration, with strengths in visualization and user immersion.

• Specific benefits:
  • Enhanced engagement through immersive experiences.
  • Improved training and design with spatial simulations.
  • Seamless remote collaboration in virtual spaces.
  • Scalable digital twins for real-world applications.

What it’s bad at: Spatial Computing struggles with high hardware costs, user discomfort from prolonged use, and limited battery life. It may not suit applications requiring low-latency, non-visual interactions or those with constrained budgets.

• Key drawbacks:
  • Expensive hardware limits accessibility.
  • User fatigue from extended AR/VR use.
  • High compute demands for real-time rendering.

Hardest problems:

• Reducing hardware costs and improving ergonomics.
• Optimizing battery life for mobile devices.
• Ensuring interoperability across AR/VR platforms.
• Addressing privacy concerns in spatial data collection.

Limitations: Spatial Computing’s constraints include high development costs, complex integration with legacy systems, and regulatory concerns around data privacy. Its effectiveness depends on robust hardware and scalable software frameworks.

• Specific constraints:
  • High costs for AR/VR hardware and development.
  • Integration challenges with enterprise systems.
  • Privacy risks from spatial data collection.
  • Limited adoption in low-budget environments.

2. Identify opportunities and solutions

Spatial Computing’s ability to create immersive, context-aware experiences positions it to address inefficiencies across industries, empowering startups to innovate and Dwarves to optimize operations. Tailored to Spatial Computing’s strengths, high-impact industries include Dwarves’ core verticals (productivity, community, liquidity, IP) and three external industries (education, real estate, gaming), where inefficiencies like limited engagement, manual visualization, and physical constraints can be mitigated through AR/VR infrastructure and applications. By co-building with startups and testing Spatial Computing internally, Dwarves can build expertise and predict high-growth partners.

For startups by industry:

• Team/individual productivity: SaaS startups face inefficiencies in remote collaboration and manual design reviews, slowing workflows. Spatial Computing enables immersive collaboration and visualization, supported by scalable infrastructure, enhancing efficiency. Co-building aligns with Dwarves’ staffing model, fostering partnerships with productivity platforms.

  • Spatial mapping framework for virtual workspaces, ensuring scalability.
  • AR-based design review tool, streamlining product development.
  • API for AR/VR integration with SaaS platforms, enabling immersive workflows.
  • VR collaboration platform for remote teams, enhancing teamwork.
  • 3D data pipeline for project visualization, automating insights.

• Community building: Community-driven startups struggle with low engagement and static interactions, reducing retention. Spatial Computing enables immersive events and scalable engagement infrastructure, improving satisfaction. Dwarves can co-build platforms to enhance participation, aligning with its 80% revenue focus.

  • AR/VR event orchestration API, enabling scalable virtual gatherings.
  • VR-based community hub for immersive interactions, boosting engagement.
  • AR content curator for personalized member experiences, enhancing retention.
  • 3D analytics pipeline for community insights, automating growth metrics.
  • AR-driven gamification tool for community challenges, increasing participation.

• Liquidity/fund engineering: Fintech startups face inefficiencies in visualizing financial data and engaging users, limiting adoption. Spatial Computing enables immersive data visualization and scalable transaction infrastructure, streamlining operations. Dwarves can partner with these startups to develop innovative tools, building expertise in a high-demand vertical.

  • Spatial data pipeline for financial visualization, ensuring scalability.
  • AR-based portfolio visualization tool, enhancing user engagement.
  • API for AR/VR transaction integration, streamlining DeFi interactions.
  • VR financial dashboard for real-time insights, optimizing decisions.
  • 3D fraud detection visualizer, improving security analysis.

• IP: Startups building IP face inefficiencies in manual asset creation and protection, limiting scalability. Spatial Computing enables immersive content creation and secure IP infrastructure, enhancing value. Dwarves can co-build solutions to protect digital assets, aligning with the thesis that IP compounds value.

  • AR/VR content creation framework, ensuring scalable asset production.
  • AR-based IP visualization tool, streamlining asset management.
  • API for AR/VR IP protection, securing digital assets.
  • VR content testing platform, ensuring brand consistency.
  • 3D asset analytics pipeline, providing IP insights.

For startups in other industries:

• Education: Edtech startups face inefficiencies in delivering engaging learning experiences and manual assessments, slowing scalability. Spatial Computing enables immersive training and scalable infrastructure, enhancing outcomes. Co-building positions Dwarves to partner with edtech leaders.

  • AR/VR learning framework, ensuring scalable content delivery.
  • AR-based interactive training platform, enhancing engagement.
  • 3D data pipeline for student performance analytics, automating insights.

• Real estate: Real estate startups struggle with physical property tours and manual visualizations, reducing efficiency. Spatial Computing enables virtual tours and scalable visualization infrastructure, boosting sales. Co-building positions Dwarves to partner with real estate innovators.

  • Spatial mapping API for virtual property tours, ensuring scalability.
  • AR-based property visualization tool, enhancing buyer experiences.
  • VR staging platform for digital interiors, streamlining sales.

• Gaming: Gaming startups face inefficiencies in creating immersive experiences and engaging players, limiting growth. Spatial Computing enables interactive worlds and scalable gaming infrastructure, boosting engagement. Co-building positions Dwarves to partner with gaming leaders.

  • AR/VR gaming framework, ensuring scalable world-building.
  • VR-based multiplayer game hub, enhancing player interactions.
  • 3D analytics pipeline for player behavior, optimizing engagement.

For Dwarves (internal case study): Dwarves faces inefficiencies in remote collaboration, financial visualization, and IP management, straining operations. Spatial Computing enables immersive workflows, data visualization, and secure IP protection, supported by scalable infrastructure, improving efficiency across productivity, community, liquidity, and IP verticals. By testing Spatial Computing internally, Dwarves builds expertise to support its consulting services.

• Internal personas:
  • Developers: Benefit from immersive code reviews.
  • Project managers: Use AR/VR for project visualization.
  • Community managers: Leverage VR for team engagement.
  • Financial analysts: Utilize AR for financial data insights.
  • Leadership: Rely on VR for strategic planning.
• Solutions:
  • Spatial mapping framework for virtual offices, ensuring scalability.
  • VR collaboration platform for remote teams, enhancing teamwork.
  • API for AR-based client presentations, personalizing interactions.
  • AR financial visualization tool for budgeting, streamlining insights.
  • 3D IP protection pipeline, securing digital assets.
• Solution architecture for Dwarves:
  • Core engine: Unity-based 3D rendering for immersive visuals.
  • Spatial mapping: Real-time digital twins for collaboration spaces.
  • Data pipeline: Process project and financial spatial data.
  • Integration APIs: Connect with Slack, Jira, and financial tools.
  • Security layer: Protect spatial data and IP assets.
• What will this technology benefit Dwarves?: Spatial Computing will enable Dwarves to operate more efficiently by facilitating immersive collaboration, visualizing financial data, and securing IP with scalable infrastructure. It will improve scalability, allowing developers to focus on high-value tasks and leadership to build innovative partnerships, positioning Dwarves as a leader in Spatial Computing consulting.

3. Prioritize and plan experiments

From the solutions identified, Dwarves must prioritize experiments that maximize revenue potential, expertise-building, startup partnership opportunities, and internal efficiency, aligning with the priority check: internal ops first, followed by startup ecosystems, strategic assets, and spin-off potential. The following 6 experiments, selected across productivity, community, liquidity, and IP verticals, ensure at least one experiment per vertical and two additional high-impact experiments (from productivity and education). These experiments balance Dwarves’ resource constraints, aiming for execution within 8–12 weeks, and focus on infrastructure and application solutions.

• Spatial mapping framework for virtual offices (Productivity): A framework uses Spatial Computing to create scalable virtual workspaces, integrating with Jira for immersive project collaboration.

  • Alignment and Impact: Aligns with internal ops by streamlining collaboration and supports SaaS partners, enhancing scalability and attracting high-growth collaborations.
  • Resources: 3 developers, moderate compute costs, 8 weeks.

• VR-based community hub (Community): A VR platform enables immersive community interactions for internal teams and clients, fostering engagement and retention.

  • Alignment and Impact: Serves internal ops by enhancing team events and aligns with community platforms, increasing scalability for startup partners.
  • Resources: 2 developers, low compute costs, 8 weeks.

• AR financial visualization tool (Liquidity): An AR tool visualizes financial data in real-time, integrating with financial platforms to optimize budgeting for startups and Dwarves.

  • Alignment and Impact: Optimizes internal financial ops and aligns with fintech startups, building expertise and attracting high-growth partners.
  • Resources: 3 developers, moderate compute costs, 10 weeks.

• API for AR/VR IP protection (IP): An API uses Spatial Computing to secure digital IP assets, ensuring protection for Dwarves’ and clients’ content.

  • Alignment and Impact: Enhances internal IP security and builds strategic assets, aligning with startup IP tools and fostering long-term partnerships.
  • Resources: 2 developers, low compute costs, 8 weeks.

• AR-based design review tool (Productivity): An AR tool enables immersive design reviews, integrating with development platforms to streamline internal and startup workflows.

  • Alignment and Impact: Boosts internal productivity and positions Dwarves as a leader in AR-driven design tools, building expertise for SaaS collaborations.
  • Resources: 2 developers, low compute costs, 10 weeks.

• AR/VR learning framework for education (Education): A framework uses Spatial Computing to deliver scalable, immersive training content, enhancing edtech startup platforms.

  • Alignment and Impact: Supports edtech partners, improving learning outcomes and positioning Dwarves as a leader in immersive education solutions.
  • Resources: 3 developers, moderate compute costs, 10 weeks.

4. Growth hacking and case study strategies

To amplify Dwarves’ expertise in Spatial Computing and gather case studies, lightweight strategies leveraging the firm’s network, X platform presence, and resource constraints are essential. These approaches focus on rapid validation, community engagement, and content creation to establish Dwarves as a leader in Spatial Computing consulting across core and external industries.

• Publish case studies on Dwarves’ blog showcasing internal Spatial Computing implementations, like virtual offices and IP protection APIs.
• Host webinars on X to demonstrate Spatial Computing’s impact on startups in education, real estate, and gaming, featuring co-built solutions.
• Engage AR/VR communities on X to share Spatial Computing insights and attract startup partners.
• Create a weekly X thread series highlighting Spatial Computing use cases in collaboration, visualization, and gaming.
• Partner with AR/VR-focused incubators to co-build with high-growth startups in edtech and gaming.
• Develop open-source Spatial Computing tools for community platforms to gain visibility and attract talent.
• Produce YouTube tutorials on integrating Spatial Computing into startup workflows for education and real estate.
• Leverage Dwarves’ network to offer beta testing for internal Spatial Computing tools to startups in external industries.
• Host hackathons to prototype Spatial Computing solutions, engaging developers and startups from real estate to gaming.
• Create a newsletter showcasing Dwarves’ Spatial Computing expertise and case studies.

Hiring backgrounds for apprentices:

• Engineers:
  • AR/VR development: Experience with Unity, Unreal Engine, and ARKit to build Spatial Computing applications, essential for immersive solutions.
  • Computer vision: Proficiency in spatial mapping and sensor integration to enable precise interactions.
  • Backend development: Knowledge of APIs and cloud infrastructure (AWS, GCP) to integrate Spatial Computing with SaaS platforms.
• Designers:
  • UX design for AR/VR interfaces: Skills in designing intuitive immersive interfaces, ensuring seamless user experiences.
  • 3D visualization: Expertise in creating spatial dashboards for financial and IP analytics.
• Consultants:
  • Spatial Computing strategy consulting: Background in AR/VR adoption strategies to guide startups on integration.
  • Industry-specific expertise: Knowledge of edtech, real estate, or gaming to align solutions with sector challenges.