Dubit-incubated virtual reality gaming company XR Games has secured US$2.6 million in seed investment funding from Australian venture capital firm Global Merces’ Media Fund. (The new funding will supplement an earlier seed round from angel investor Nigel Douthwaite.)

XR Games, which creates mobile and arcade VR games for licensed IPs, will use the investment to expand its senior management team, grow its design concepts and acquire more properties. Adam Schoff, chief investment officer at Global Merces, will join the XR Games board as a part of the deal, and the company is poised to make a new appointment announcement in the coming weeks.

XR Games launched at the beginning of last year to develop of suite of kid-centric VR apps. The company’s work falls in line with parentco Dubit’s ongoing research on VR technology’s impact on children and the need to build more guidelines for the space.

As VR content continues to make a mainstream market push, companies are pumping out new material for kids and families, including LEGO turning three LEGOLAND ‘Project X’ roller coasters into high-tech virtual reality attractions. Nickelodeon also invested in location-based VR startup Dreamscape Immersive’s US$30-million Series B financing round near the end of last year, and Baobab Studios recently launched its second VR film for kids and families.