Learning Center

The Success of Palmer Luckey and Oculus: Luck Had Nothing to Do With It

Born in 1992, Palmer Luckey is an entrepreneur who was born and raised in Long Beach, California. He came from a family of hard workers: his father was employed by a local car dealership, while his mother homeschooled Palmer and his three younger sisters.

From an early age, Palmer showed a passionate interest in both electronics and engineering. Additionally, his hobbies included something that most 1990s kids loved - video games and technology in general. He would go on to take classes at two local community colleges - Golden West College and Long Beach City College - between the ages of 14 and 15. Later, he attended California State University, Long Beach where he was also the Online Editor for the institution's student-operated newspaper.

Kevork Djansezian/ Getty Images News via Getty Images

At this point, it's understandable to think that the story of Palmer Luckey sounds pretty familiar. He's a 30-year-old entrepreneur with a fairly typical upbringing who showed interest in electronics like countless other kids born at a turning point for personal computers, technology, and the Internet.

But what makes Palmer story's unique is that when he was just 16 years old, he started building VR (virtual reality) headsets that he would design from scratch. He would then go on to develop a device called the Oculus Rift, which is typically considered to be the device that revived the virtual reality industry. The parent company - Oculus VR - was then almost instantly swallowed up by Facebook.

You may also think that Palmer Luckey is just another tech entrepreneur who "got lucky" and then "got rich." But in this particular case, luck had absolutely nothing to do with it.

The Journey of Palmer Luckey: The Story So Far

Generally speaking, when an entrepreneur is considered to have "gotten lucky," they're someone who found themselves in the right place at the right time. For Palmer Luckey, such a scenario was largely impossible because, by the early 2010s, virtual reality was considered a dead industry - a novelty of the past, similar to the 3D movies of the 1950s.

Instead, he had to build "the right place and the right time" with his own two hands - both literally and figuratively in this case.

Palmer was so passionate about electronics in general but specifically about virtual reality that he began to design and build many, many of his own displays. Early models had a plethora of issues that detracted from the experience like low contrast or a low field of view. But still, he persisted.

As he began to tackle these issues, he was plagued by new ones like headsets that weighed too much or that were far too expensive to ever be commercially viable. But still, he persisted.

Over the next few years, it has been estimated that he built no less than 50 different versions of what would become the Oculus Rift - all in his parents' garage.

In an effort to raise money for what was quickly becoming an expensive hobby, Palmer was able to earn approximately $36,000 by refurbishing and selling damaged iPhones. He also held down a variety of part-time jobs, including but not limited to a sailing coach, a computer repair representative and more.

When Palmer finally built a model he was satisfied with - the sixth generation now known as the Oculus Rift - he realized he wasn't finished. He knew there were other people out there who were every bit as passionate about the topic of virtual reality as he was, so he wanted to bring this development to the masses. He decided to sell the Oculus Rift as a DIY kit on Kickstarter.

It was then that a software developer famous for 1990s mega-hit video games like "Doom" and "Quake" reached out, asking for a prototype of the Oculus Rift. Not too long after that, the video game development company Valve also publicized the Kickstarter campaign - drawing much more attention to it than Luckey ever would have been able to manage on his own.

Yet despite a situation that could have already been considered to be a rousing success, he wasn't finished.

After dropping out of college to see to Oculus VR and the Oculus Rift full-time, the Kickstarter campaign was able to earn a massive $2.4 million. It began to get so much attention that it caught the attention of Facebook.

In March 2014, Facebook purchased Oculus VR - and the underlying Oculus Rift design and technology - for an incredible $3 billion. While keeping in mind that the amount of money Luckey made was never publicly disclosed, some estimate that it is around $700 million.

All of this, and he was still only 22 years old. If nothing else, Palmer Luckey is proof positive of the fact that hard work, dedication, and passion can get you far in this life. Yes, some people get where they are through ample amounts of luck - but in this case, that couldn't be further from the truth.

Share this article...

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Social Media

Rose Tax & Financial

8 Pinon Ave
Cedar Crest, New Mexico 87008
Mon - Fri: 10:00am to 6:00pm
Sat: 10:00am to 2:00pm

Check the background of your financial professional on FINRA's BrokerCheck
Avantax affiliated Financial Professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC, Investment Advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd., Suite 100, Dallas, TX 75019. 972-870-6000.
The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third party website.
This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences.
For Important Information and Form CRS please visit https://www.avantax.com/disclosures.

FAQs Frequently Asked Questions
Type your message here.
Please fill out the form and our team will get back to you shortly The form was sent successfully