Three’s Company: The Trio That Built a Digital Empire

The founding story of Improbable began at Cambridge’s Computer Laboratory, where Narula and Whitehead met during a dissertation review. Sharing a mutual passion for multiplayer games and virtual worlds, they envisioned creating immersive, persistent virtual environments that could transform decision-making processes. Lipka joined them, bringing his expertise from Imperial College and experience at Goldman Sachs.

In 2012, operating initially from Narula’s family home in Hertfordshire, the trio founded Improbable. Their goal was to develop a platform that would enable smaller game development teams to create massive, complex simulations. This vision led to the creation of SpatialOS, a distributed operating system designed for large-scale simulations integrating with major game engines. 

Herman Narula

Herman Narula, born in 1988 in Delhi, India, moved to the UK at an early age. He was educated at the prestigious Haberdashers’ Aske’s Boys’ School and later at Cambridge, where he specialized in computer science. His interest in gaming began at the age of seven with the game Magic Carpet, and he was coding in C++ by twelve. Herman comes from an entrepreneurial family; his father is a successful businessman, and his mother is a renowned philanthropist. Beyond gaming, Herman is an author and a vocal advocate for the metaverse, emphasizing its potential as a collaborative space for communities rather than corporations. (Herman Narula)

Peter Lipka

Peter Lipka, a fellow alumnus of Haberdashers’ Aske’s Boys’ School, continued to Imperial College London, where he earned a first-class Master’s degree in Computer Science. Before co-founding Improbable, Peter worked as an Analyst Developer at Goldman Sachs. (Peter Lipka)

Rob Whitehead

Rob Whitehead is a visionary entrepreneur and the Co-Founder and Chief Product Officer at M2. A graduate of Cambridge University, Rob’s journey into the world of innovative technology began over a decade ago when he co-founded Improbable. He played a key role in the creation and advancement of groundbreaking technologies that have powered the company’s renowned virtual world and simulation products. (Rob Whitehead)

Meta Worth It? The Billion-Dollar Potential of Virtual Worlds

The metaverse represents a rapidly expanding segment of the digital economy, encompassing virtual and augmented reality spaces where users interact in real-time. In 2023, the global metaverse market was valued at approximately USD 82.02 billion. Projections indicate significant growth, with expectations to reach USD 507.8 billion by 2030, reflecting a compound annual growth rate (CAGR) of 37.73% from 2024 to 2030. (Grand View Research)

This expansion is driven by advancements in technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR), which enhance immersive experiences across various sectors, including gaming, online shopping, and education. The integration of spatial technologies enables users to engage with digital content as if it exists in their physical surroundings, blurring the boundary between virtual and real-world experiences.

Regional analyses highlight North America’s dominance in the metaverse market, attributed to the presence of major technology companies and high adoption rates of digital platforms. However, the Asia-Pacific region is anticipated to experience the fastest growth, with a projected CAGR of 52.0% between 2024 and 2033. This surge is due to steady economic developments and increased digitization across countries like India, China, and Japan. (Precedence Research)

The metaverse’s potential extends beyond entertainment, offering new avenues for economic, social, and cultural engagement. Businesses are exploring opportunities within virtual commerce, virtual real estate, and digital assets, including non-fungible tokens (NFTs). The growing demand for immersive experiences in sectors such as entertainment, gaming, and education further propels market growth.

Despite the promising outlook, challenges such as high development costs, technical complexities, and concerns about data privacy and security persist. Addressing these issues will be crucial for sustained growth and widespread adoption of metaverse technologies.

Mission Improbable: Solving Big Problems in Virtual Spaces

Their mission is to enable the creation of new realities that solve previously intractable problems, making people happier, safer, and more connected. The company’s vision focuses on transforming economies and industries through rich, interactive environments. These virtual worlds range from multiplayer games to synthetic environments that simulate real-world scenarios, assisting governments in modeling, planning, and training.

Improbable addresses several challenges in the development of large-scale virtual environments. Traditional game development often struggles with creating persistent, immersive worlds that can support thousands of concurrent users. Improbable’s technology enables the creation of richer, more immersive, and persistent virtual worlds, solving significant problems in areas as diverse as defense, energy, city efficiency, health, and finance.

Their business model centers around the integration and application of its SpatialOS technology as a core development platform. Developers and enterprises leverage SpatialOS to create, deploy, and manage expansive virtual environments that can host multiple users simultaneously and interact with a nuanced and evolving ecosystem. By offering this platform-as-a-service (PaaS), Improbable provides the necessary tools and support to developers, empowering companies to innovate through immersive training programs, complex simulations, and enhanced gaming experiences.

In recent years, Improbable has transitioned to a venture builder model, focusing on building ventures in cutting-edge sectors like AI, blockchain, and the metaverse. This approach involves initiating and developing new businesses powered by their technologies to make the metaverse a useful reality through entertainment, social, and enterprise applications.

Platform Perfection: Tools to Build the Ultimate Virtual Playground

SpatialOS

SpatialOS is a distributed operating system that enables developers to build expansive, persistent virtual environments. It allows for the creation of complex simulations by integrating multiple game engines and providing the infrastructure to manage numerous concurrent users. This platform has been instrumental in developing large-scale multiplayer games and simulations across various industries.

Morpheus

Introduced in October 2021, Project Morpheus is a suite of software projects designed to achieve massive scale during gameplay while reducing operating costs for massively multiplayer online games and simulations. It supports applications such as esports stadiums and virtual concerts, enhancing the scalability and efficiency of virtual experiences.

Somnia

In October 2024, Improbable announced the development of Somnia, a blockchain designed to process over 400,000 transactions per second. Developed under their Virtual Society Foundation, Somnia aims to support large-scale metaverse applications with Ethereum compatibility, providing a robust infrastructure for decentralized virtual experiences.

Metaverse Infrastructure and Technology

Improbable is at the forefront of metaverse innovation, building powerful infrastructures that enable highly interactive and scalable virtual worlds. This includes:

• MSquared: A cutting-edge metaverse platform that prioritizes interoperability. MSquared allows seamless integration between different virtual environments, enabling users to traverse multiple digital worlds with a single avatar or digital identity. This technology was showcased in events like the MLB Virtual Ballpark, where fans could interact in real-time, combining live streams and immersive 3D experiences.
• Real-Time Interaction: Their platforms support thousands of simultaneous users in the same environment. For instance, Jitter enabled 2,400 players to participate in a live Twitch-integrated gaming session, combining streaming and direct user engagement.
• High Fidelity and Scalability: Improbable leverages advanced rendering and bandwidth optimization techniques to provide high-quality virtual experiences. This ensures that digital worlds remain immersive and stable even during peak loads.

Web3 Innovations

Improbable actively integrates web3 capabilities into its solutions to empower creators and users with decentralized tools:

• Digital Asset Economy: The company enables the creation and management of digital assets that are interoperable across platforms. Events like the KosmoPop metaverse celebration have demonstrated the ability to fuse entertainment with collectable virtual merchandise, creating new revenue streams for artists and brands.
• Decentralized Ownership: Through blockchain integration, Improbable facilitates transparent ownership of virtual goods, allowing users to carry their assets across different platforms seamlessly.

Venture Building

Improbable plays a critical role in nurturing new businesses within the realms of metaverse, AI, and web3. Their venture-building program offers:

• End-to-End Support: Improbable provides strategic mentorship, business planning, branding, and operations support. Entrepreneurs gain access to tools and guidance for developing products and scaling their ventures.
• Financial Backing: Improbable assists startups in raising capital and navigating through funding rounds, ensuring long-term sustainability.
• Technology and IT Expertise: Founders benefit from Improbable’s decade of experience in solving complex technological challenges, enabling them to create innovative solutions in record time.

Entertainment and Social Experiences

They have developed various projects that redefine how entertainment is consumed:

• Edison: A platform for large-scale multiplayer experiences, Edison combines gaming, live streaming, and community-driven storytelling. Past events have included battles and races that utilized innovative gameplay mechanics and artistic digital environments.
• KosmoPop: This metaverse platform focuses on fan engagement, particularly in the K-pop industry. By combining live performances and interactive virtual parties, it creates unique connections between artists and global audiences.
• BBC Philharmonic Virtual Concert: Improbable’s technology enabled a groundbreaking classical concert experience in the metaverse, highlighting their capability to create immersive cultural events.

Open Source and Collaboration

Improbable is committed to fostering an open-source ecosystem that accelerates innovation across industries:

• Open Core Philosophy: Developers and organizations are encouraged to build on their foundational technologies. This collaborative approach ensures widespread adoption and continuous improvement.
• Community Contributions: Improbable actively contributes to shaping industry standards and supporting interoperability through shared tools and frameworks.

Legacy Ventures

Improbable has incubated and sold several ventures, showcasing its ability to nurture successful businesses. These include:

• Improbable Defence: Focused on national security through simulation technology, this division was sold to NOIA Capital in 2023.
• The Multiplayer Group (MPG): A service business for AAA multiplayer game development, MPG grew significantly under Improbable before being sold to Keywords Studios.
• Inflexion Studios and Midwinter Entertainment: Known for genre-defining games, these ventures were acquired by global gaming brands, further validating their venture-building model.

Breaking Virtual Ground: The Tech That Powers Tomorrow’s Worlds

Improbable leverages cutting-edge technologies to enable the creation of expansive, interconnected virtual worlds, commonly referred to as the metaverse. Central to their approach is the integration of Web3 principles, which emphasize decentralization, user ownership, and interoperability.

Web3 represents the next evolution of the internet, transitioning from centralized platforms to decentralized networks. This paradigm shift allows users to have greater control over their data and digital assets, facilitated by blockchain technology. In this context, Improbable’s MSquared (M²) network plays a pivotal role. M² is a network of interoperable Web3 metaverses powered by Improbable’s Morpheus technology. It enables scale and interoperability between metaverses, allowing game developers to create virtual assets like NFTs and users to transport these digital assets across different virtual worlds. This framework promotes decentralized, blockchain-enabled governance, empowering network communities to participate in decision-making processes.

The metaverse itself is a collective virtual shared space, merging physical and digital realities. It encompasses a wide range of applications, from gaming and entertainment to education and commerce. Their technology facilitates the development of these immersive environments by providing the infrastructure necessary for large-scale simulations and real-time interactions among thousands of users. For instance, their Morpheus technology has been demonstrated to support over 7,000 concurrent users in a single virtual event, showcasing its scalability and efficiency.

By integrating Web3 technologies and principles, Improbable enables the creation of decentralized, user-owned virtual worlds that are interoperable and scalable. This approach not only enhances user experiences but also opens up new economic models and opportunities within the digital realm.

A Meta Impact: Profits, Plaudits, and  Friends in High-Tech Places

The company’s technological advancements have enabled large-scale virtual experiences, such as supporting over 7,000 concurrent users in a single virtual event. This capability has opened new avenues for fan engagement in sports, entertainment, and music, enhancing user experiences in the metaverse.

In the gaming sector, they collaborated with Yuga Labs to develop Otherside, a metaverse platform. In October 2024, Improbable unveiled the Somnia Blockchain DevNet to support Otherside. Improbable has also engaged with academic institutions and technology hubs to foster innovation in digital landscapes. (Katana)

Between 2018 and 2020, the company secured contracts with the British Army and UK Strategic Command, delivering synthetic environments for mission planning and training. By 2023, the company had hosted over 30 metaverse experiences, serving a diverse range of industries. Their lean operating model ensures efficient delivery at scale, cementing their leadership in the metaverse space.

From Big Bets to Bigger Bucks: The Funding Journey of Improbable

Improbable has raised $1.09 billion in equity funding through 10 rounds, making it one of the most well-funded companies in the metaverse and virtual worlds industry. The company has attracted 34 investors, including major institutional backers like a16z, Horizons Ventures, SIG, and Temasek, as well as angel investors such as David Rowan and Alexander Asseily. (Tracxn)

The most recent funding round was a $111 million Series D in October 2022, led by MultiversX. This round valued the company at a pre-money valuation of $3.3 billion and a post-money valuation of $3.4 billion. Earlier in April 2022, Improbable secured another $150 million in Series D funding from investors including a16z, SIG, and SoftBank. 

Notable earlier rounds include a $658 million Series C in April 2017, led by Horizons Ventures and SoftBank, and a $75.8 million Series C in July 2018, backed by NetEase Games. These investments supported the company’s growth during its formative years and helped it scale its technologies like SpatialOS and its metaverse initiatives.

Their financial journey has significantly evolved over time. In fiscal year 2018-19, the company reported $1.2 million in revenue, a significant increase from $579.9K the previous year. However, it also recorded a net loss of $39.2 million, reflecting high investments in research and development. Despite earlier losses, Improbable turned profitable in 2023.

Not So Improbable: Shaping the Future

Improbable is redefining the way virtual worlds are created and experienced. The company builds advanced technologies that enable developers to create large-scale, immersive environments. Its platforms, such as SpatialOS and MSquared, allow seamless interactions in virtual spaces, supporting thousands of users simultaneously. Whether it’s for gaming, enterprise applications, or virtual events, Improbable empowers creators to design complex, persistent worlds that feel real and connected.

At the heart of their innovation is its focus on scalability, interoperability, and decentralization. By leveraging Web3 technologies and blockchain, the company enables users to own and transport digital assets across different virtual spaces. This vision aligns with the evolving metaverse, where interconnected virtual experiences transform how we work, play, and interact.

Improbable doesn’t just build tools; it solves real-world challenges. From creating robust infrastructures for online games to providing training simulations for governments, its solutions push the boundaries of what’s possible. The company’s dedication to innovation has made it a key player in the metaverse ecosystem, influencing industries from gaming to education.

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