Phosio lands $4M to advance thin-film oxides for AR glasses

Phosio, a thin-film materials startup based in Corvallis, Oregon, has raised $4 million in seed financing that it hopes will see it advance the technology for applications in optics for augmented reality (AR) glasses.

Known as “PhosioLux”, the company’s technology is a family of transparent, UV-curable metal oxide precursors that promise to enable smaller, lighter optics for AR displays, as well as transparent transistors.

Co-founded by CEO Omid Sadeghi, Cory Perkins, and Douglas Keszler, Phosio is based at Oregon State University’s (OSU’s) Advanced Technology and Manufacturing Institute (ATAMI).

OSU chemistry roots

Last year the company brought on board as its executive chairman Joe O’Keeffe, the serial tech entrepreneur who founded Ireland’s InfiniLED and subsequently became Meta’s VP responsible for AR display and optical systems research when the tech giant acquired the Tyndall Institute spin-out.

“This funding allows us to move from proof-of-concept to commercial reality,” said Sadeghi. “Our goal is to make AI-enabled eyewear accessible to everyday consumers. We’re excited to partner with investors who bring deep expertise in AR/AI, semiconductors, commercialization, and advanced manufacturing.”

The seed round was led by Taiwan-based MESH Ventures, with participation from Sierra Ventures, TEL Venture Capital, Silicon Catalyst Venture, Willamette Valley Capital, and Silicon Catalyst Angels.

Phosio has its roots in OSU’s chemistry department, where Sadeghi worked closely with Keszler - a distinguished professor at the university specializing in high-quality films for photovoltaic absorbers.

In a release announcing the seed funding Keszler said: “While the current market relies on complex and costly lens manufacturing processes, the Phosio platform targets a scalable solution that makes possible all-day wearable glasses at a consumer-friendly price point.

“We’re thrilled to welcome our new investors as we accelerate commercialization and expand engagement with partners across the semiconductor and consumer electronics ecosystems.”

SPIE AR/VR/MR advances

While the AI/AR glasses industry dearly wants to shift to such consumer-friendly glasses, Phosio points out that the current cost of the optics and display elements remain the biggest barrier to mass adoption.

“Today’s AR/AI glasses rely on complex, costly display systems that are bulky, power-hungry, and difficult to manufacture at scale,” says the startup. “Phosio’s proprietary thin-film platform integrates high-performance display functionality directly into lightweight, everyday eyewear, eliminating the cost, bulk, and power demands that have slowed mainstream adoption.”

At SPIE’s AR/VR/MR conference, since 2023 the Phosio team has presented advances with its PhosioLux materials, describing them as solution-based, UV-curable inorganic coatings with customizable refractive indices ranging from 1.3 to 2.35, and low absorbance across the visible spectrum.

The formulations are said to be compatible with incumbent imprinting tools, enabling waveguide fabrication on high-index glass. “Consequently, Phosio’s technology provides a unique path to elevating field-of-view and image quality beyond current state-of-the-art AR headsets,” the team reported in 2023, when Phosio was also a finalist in the SPIE Startup Challenge.

Earlier this year at the San Francisco event, they said that the refractive index range had now been extended to 2.6, thanks to advances in fabricating and characterizing optical gratings.

“Results demonstrate refractive indices approaching silicon carbide, with improved manufacturability for next-generation AR optical components,” they added.