This article is also reprinted from: Investment Community.

The original article link is: https://news.pedaily.cn/20231117/73732.shtml

Suppose you are sitting in a stylish and elegant restaurant, having a conversation with your date. The discussion turns to her passion for art history, an area where you have limited knowledge. In this situation, what would you do? With the advent of Arcension's DigiWindow technology, you can now confidently discuss art history with her, almost like a professional scholar, turning what used to be a challenge into a thing of the past.

Imagine, with just a glance, the ability to access a vast amount of information and data without being noticed. This is precisely the vision of Arcension: to turn every pair of glasses into smart glasses. With a light tap on the frame, the retrieval and display of all information subtly emerge above your line of sight.

"The original intention of entrepreneurship is a bit 'adolescent.' I hope to enable everyone to become a more advanced species, like in 'Mission: Impossible.'" This is how Jia Jieyang, the founder and CEO of Arcension, expressed it.

From what I understand, Arcension has just completed a seed funding round of over tens of millions of yuan, with plans to launch a fully-featured product by the end of 2023. Perhaps, we can anticipate that Arcension,  with its lightweight product design and cutting-edge technological advantages, will emerge as a new player in the AR industry race, opening up a completely new perspective for consumers.

01 The 'Trailblazer' in the Eyewear Industry

The smart eyewear industry welcomes a 'Trailblazer.

Holding the self-developed DigiWindow technology, Arcension has successfully developed the world's smallest near-eye display optical system and announced the possibility of launching a fully functional product by the end of this year. In less than a year since its establishment, Arcension has achieved a breakthrough in the lightweight near-eye display field.

Even in face-to-face interactions with the wearer, it is impossible to distinguish between smart glasses equipped with DigiWindow and regular glasses. Unlike the commonly used optical solutions in previous AR glasses, such as waveguides and Birdbath, the most significant feature of DigiWindow technology is its smaller physical size, lighter weight, and lower power consumption, making it more convenient for both wearing and usage. At the same time, DigiWindow technology cleverly avoids issues present in traditional AR optical solutions, such as light leakage, dispersion, rainbow effects, and can easily achieve optical correction from farsightedness to high myopia.

“The DigiWindow technology enables the near-eye display module to achieve a minimum volume of 222mm, with a module weight between 0.1-0.2 grams. The total system weight, including the module, battery, motherboard, etc., is less than 8 grams. The weight difference between a regular pair of glasses before and after modification is generally less than 5 grams," explained the technical leader of Arcension.

The core differentiator between DigiWindow technology and other AR solutions is its ability to seamlessly integrate into almost any regular eyeglasses. By adding a smart wearable module inside the eyeglass frame and connecting it via Bluetooth to a smartphone, a regular pair of glasses can be transformed into smart glasses. Users can quickly enter a mixed reality world and access common features found in most AR glasses, such as navigation, translation, captioning, information prompts, AI assistance, physiological parameter monitoring, and more.

"From features to scenarios, DigiWindow technology differs from other AR solutions," said Jia Jieyang. The original intention of DigiWindow is to provide smart upgrades to regular eyeglasses. In other words, DigiWindow targets the ordinary eyeglass buyers in China who purchase 450 million pairs of glasses annually, distinguishing itself from the consumers of entertainment-oriented AR devices for movies, games, and similar purposes.

The difference in consumer groups has not isolated Arcencion from other AR device manufacturers. Adhering to the value of being an "enabler," Arcension can provide a set of solutions, whether it is empowering end customers directly, empowering traditional eyeglass manufacturers, or empowering other AR smart eyewear manufacturers.

In the eyewear industry, Arcension is currently the only company that can provide a solution for the smart upgrade of regular eyeglasses. As a new player, Arcencion does not yet have true "competitors" in the traditional sense. This is both an advantage for Arcencion and its "happy dilemma."

“When I invested in Arcension, there was no direct comparison in the industry," said Ci Ran, the angel investor of Arcension and the founder and CEO of moody, in an interview. He mentioned that some great companies, like DJI in the beginning, didn't have direct competitors, such as combining model aircraft and cameras to create a portable photography device, opening up a new consumer category.

Why choose this "lonely road"? Jia Jieyang provided three reasons

The first reason is to meet the development demands of the eyewear industry. On one hand, the traditional eyewear industry has stabilized in terms of growth, and the competitive landscape is well-established. Major eyewear manufacturers are looking to introduce new growth points. On the other hand, the case of smartwatches replacing traditional quartz watches has proven that the smartification of traditional wearables is a prevailing trend. It is reported that Arcencion has already collaborated with several eyewear manufacturers, including international fashion brands and publicly listed companies.

The second reason is to seize the opportunity to meet the upgraded demands of regular eyeglass consumers. Jia Jieyang believes that in the future, eyeglasses will undoubtedly be a key carrier for the intelligent upgrade of humanity. For the over 900 million eyeglass wearers in China, there is a growing desire for eyeglasses to offer more than just vision correction but also additional smart functionalities. According to Jia, this shift is inevitable. Additionally, due to its almost "invisible" appearance and better fulfillment of practical needs like translation, navigation, and annotations, eyeglasses equipped with DigiWindow technology have better acceptance and universality compared to other AR solutions.

The third reason is due to the development process of the AR industry. In the past five years, the primary challenge in the AR industry was how to bring laboratory technologies into the market. Looking ahead to the next five years, the main challenge in AR industry development will be how to quickly find the logic for scale and establish an ecosystem. The DigiWindow solution enables AR products to leverage the existing inventory in traditional industries, allowing AR products to take a crucial step towards large-scale applications and becoming a "game-changer."

"Not choosing between the red ocean and the blue ocean, DigiWindow opts to use the volume of traditional industries to open the door to AR displays, creating a new category that does not belong to the traditional definition of AR," said Deng Xudong, Co-founder and COO of Arcension, in an interview.

02 The two "breakthroughs"

In 2016, after completing his Ph.D. at Stanford University, Jia Jieyang joined Mojo Vision, a company that aimed to bring AR smart contact lenses to the consumer market. From 2016 to 2018, as one of the initial employees, Jia Jieyang was involved in the development of Mojo Vision's first prototype of smart contact lenses. His experience at Mojo Vision inspired him to later develop a super-compact near-eye display system and apply it to smart glasses.

In 2018, after leaving Mojo Vision, Jia Jieyang returned to China and co-founded a chip company called Lingming Photonics. Four years later, recognizing the ripe opportunity to create an all-weather, genuinely useful near-eye display device, Jia Jieyang, who had returned to the AR industry in 2022, began independently developing the DigiWindow technology with more sophisticated processes and improved display effects compared to Mojo Vision.

The small size and great energy of DigiWindow are not only reflected in its appearance but also in its technological capabilities.

"AR industry has always been shrouded in the 'Five Curses,' which are the five factors constraining the development of AR displays: dispersion, rainbow effect, light leakage, excessive volume, and near-far vision adjustment." - Jia Jieyang.

How did DigiWindow break the "Five Curses" of the AR industry?

From a technical principle perspective, DigiWindow applies many advanced methods in computational optics and micro-optics, reflecting the crystallization of Silicon Valley's expertise in the optics industry.

Specifically, DigiWindow technology primarily relies on geometric optics with micro-optics as a supplementary component. It achieves breakthroughs in overcoming some limitations of geometric optics using micro-optical techniques, optimizing the efficiency of light folding effects in geometric optics, and suppressing certain undesired aspects such as light energy loss and scattered light.

"Even in the entire optics industry, such cases are rare. It can be said that the DigiWindow technology solution has surpassed the cognitive limits of some optical experts. If a technology can break through cognitive limits, it must be extraordinary," said Cieran, an angel investor in Arcencion.

Energy consumption is another advantage of DigiWindow. Due to high optical efficiency, DigiWindow's energy consumption can be compressed to very low levels, providing a week-long battery life. This significantly alleviates users' concerns about battery life in smart glasses products, with battery capacities ranging from 40 milliampere-hours to 200 milliampere-hours, allowing users to choose according to their needs.

Any new technology, compared to traditional ones, either excels comprehensively or involves trade-offs. DigiWindow, however, manages to achieve both.

It is known that Arcencion has accumulated more than twenty patent applications in core optical technology to date. The patent fortress built from these patents might be one of the reasons why DigiWindow technology stands out in the industry.

Of course, bringing a product to market requires compromises. Jia Jieyang frankly admits that in terms of product development, while the DigiWindow optical solution achieves extreme compactness, lightness, and energy efficiency, it temporarily sacrifices large-format viewing and gaming entertainment functions. "Nevertheless, even with these trade-offs, DigiWindow's field of view (FOV) and resolution are comparable to mainstream waveguide AR solutions, while significantly reducing volume and improving convenience," says Jia Jieyang.

It's worth mentioning that with the development of the supply chain and the maturity of technology, DigiWindow technology has also made significant improvements in cost control. According to Deng Xudong, glasses products equipped with DigiWindow technology can easily be priced at the thousand yuan level.

03 Making humanity a more advanced species.

"Tech giants all have a dream of 'changing the world,' and the Arcencion team is no exception.

While working at Mojo Vision, Jia Jieyang encountered the advanced and visionary concept of AR. In 2016, the entire industry's understanding of AR/VR was still very shallow. Whether it was VR or AR, the general impression in people's minds was 'bulky.' However, Mojo Vision proposed to create an all-weather wearable, even intelligence-invisible glasses that could change people's perception of the real world, making everyone a superhuman like in 'Mission: Impossible.'

The advanced concepts and attractive vision of Mojo Vision fascinated Jia Jieyang with near-eye display technology. The seed of 'making everyone a superhero' took root and sprouted in Jia Jieyang's heart, becoming the driving force for him to return to the AR near-eye display industry.

Jia Jieyang hopes to 'make humanity evolve into a more advanced species.' This somewhat 'adolescent' idea is not only Jia Jieyang's vision but also the 'ultimate mission' that brought the Arcencion team together.

"The word 'Vision' itself has a double meaning, both explaining vision and perspective. It means not only improving our vision but also enhancing our insight and perspective into the world we live in. Our entire team shares this vision," said Jia Jieyang.

It's worth noting that the core Arcencion team consists of all elite returnees from prestigious schools with work experience in major Silicon Valley companies. The team integrates Stanford's technology, Silicon Valley's product philosophy, and the commercialization capability of new retail, along with comprehensive XR product development experience, including viewing devices, VR, and audio smart glasses. With such a 'high configuration' team, Arcencion is on the road to 'change the world' faster than ordinary startup companies.

Regarding the future of Arcencion, Jia Jieyang has a clear plan. Short-term, mid-term, long-term, each period's layout is well understood.

Achieving a million pairs is Jia Jieyang's short-term goal. A million pairs are a figure that the entire AR industry has not yet reached, and Jia Jieyang hopes that this goal can be achieved in the near future.

In the mid-term, Jia Jieyang stated that Arcencion is mainly exploring two aspects: improving visual capabilities and exploring the significance of all-weather intelligent glasses. Arcencion is a true pioneer in promoting truly all-weather wearable intelligent glasses with displays. "Many advanced features discussed in the industry, such as all-weather AR+AI personal assistants, may have to rely on such platforms to be verified." In the next five years or so, Arcencion will continue this exploration.

"Perhaps in five years, the grand vision of AR will become more prominent." At that time, with Arcencion's R&D experience in AR invisible glasses, it may also promote more advanced technical means and product forms, such as AR invisible glasses. In the long-term plan, Jia Jieyang stated that Arcencion is committed to creating the next generation of personal terminal devices for humans, allowing glasses to replace smartphones.

Looking up at the stars while remaining grounded, Jia Jieyang's dream not only inspires himself and the team but also ignites the passion of investors.

Ciran, the angel round investor mentioned earlier, is the founder and CEO of the leading colored contact lens brand moody, and also a loyal Marvel fan. When asked why he favored Arcencion, Ciran said, 'In addition to looking forward to the future of this track, I am also willing to support Jieyang in changing the world.'

Recalling the scene of their first few meetings, Ciran still vividly remembers it. "I couldn't sleep for a few days after the meeting," and Jia Jieyang's dream infected the Marvel fan Ciran deeply. In tea houses and meeting rooms in Shanghai and Shenzhen, Ciran and Jia Jieyang discussed the possibilities of the DigiWindow technology solution countless times, initially treating it as a discussion of science fiction, but later discovering that this technology could be implemented and commercialized.

One is a 'game changer' in the existing eyewear market, and the other is a leading player in the field of colored contact lenses and glasses. The cooperation between Arcencion and moody proceeded smoothly. In addition to providing financial support, moody is also assisting in early commercial development.

It is understood that Arcencion has completed two rounds of financing this year, accumulating tens of millions of yuan. Deng Xudong revealed that Arcencion's first product will start mass production in the first half of next year, and the current financing is preparing for next year's mass production.

"By using wearable devices, humanity will definitely achieve rapid evolution." Jia Jieyang said, "We are ready."