Total Immersion Raises $5.5M From Intel, Others For Augmented Reality Platform

Augmented reality software company Total Immersion this morning announced that it has secured $5.5 million in a funding round led by Intel Capital, with existing backers Partech, iSource and Elaia Partners participating. The company has now raised more than $11 million in funding.

The additional capital will be used to step up development of its D’Fusion software platform and to expand operations in Asia and the United States, grow its community of developers and explore new consumer markets.

Founded in 1999, Total Immersion provides a commercial augmented reality platform that enables developers to blurs the line between the virtual and the real world by integrating realtime interactive 3D graphics into live video streams. See demo video below.

Intel says it will work together with Total Immersion to develop new usage experiences for its own platforms. It’s worth noting that this isn’t the first time the chip maker’s venture capital arm invests in an augmented reality software company – it also took the lead in a $14 million financing round for Layar announced back in November 2010.