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3 4 C T I N N O V A T O R S , 2 0 2 5 law and bankruptcy. "I gained firsthand insights into the common pitfalls and practices that make small businesses succeed or fail," Wallace said. Wallace's interest in innovation began with the dawn of the internet in the 1990s. "I was fascinated by how new innovations could disrupt established paradigms and reshape entire industries," he said. at curiosity evolved into a desire to build a business that could make a difference. In 2001, Wallace made an initial investment in VRSim, using his years of small business experience to help establish structure and process. By 2006, he had assumed control of the compa- ny's strategic direction and acquired a controlling interest. 'Accelerated learning' Under Wallace, VRSim's first venture into skills training was SimsWelder — later renamed VRTEX — a simulated welding program designed to accelerate learning through an immersive environment with realistic visual and auditory components. e program lets users practice welding techniques in a simulated environment, providing immediate feedback on quality and perfor- mance. Wallace said the benefits of immersive virtual simulations are especially impactful for early skills-based learning. "e first twenty hours of skills development are the most import- ant," Wallace said. "at provides the most critical opportunity for objective feedback on basic skills and enables accelerated learning." In fact, a 2010 Iowa State University study of VRTEX found that students who used VRSim's simulator alongside traditional welding instruction achieved 41% more certifications and completed training 23% faster than those using only conventional methods. e virtual group also showed greater team interaction, reduced training costs by an average of $263 per student and completed nearly twice as many practice welds as the non-VR group. Wallace said VRSim's technology drives those results by analyzing performance data and adapting the training to each user's strengths and weaknesses. "We improve outcomes by ensuring each participant progresses at their own pace," Wallace said. "Adaptive learning also helps instructors by automating routine assessments and making training programs more efficient and cost-effective." In 2009, Lincoln Electric, the world's largest supplier of welding products, purchased the rights to VRSim's welding simulation tools. e product is now used in more than 120 countries around the globe. Finding a competitive edge Wallace said his company's small-business footprint makes the pressure to innovate and deliver meaningful impact especially high in an increasingly competitive virtual reality market. PwC projects the global VR training market will grow to $294 billion by 2030. As a self-funded company with 14 employees, and annual revenue around $5 million, Wallace said VRSim has focused on opportunities with clear demand, emphasizing depth of specialization over a broad product or industry portfolio. "Our innovations need to make an impact to survive in the market," Wallace said, noting that bringing a new product to market typically takes about two years. "We've had to be very particular in developing products that address specific needs and make a difference." Wallace said the bottom-line impact has helped him build a commit- ted culture of innovation. "We have highly skilled employees who could work at Amazon or Google," he said, "but they've seen the value our products make in the real world and how students react to our programs, and that's important." Commercial painting Building off the success of its welding product, VRSim in 2011 launched SimSpray, a virtual training tool for painting and coating. e product is used across industries, including automotive, aerospace, construction trades, furniture and cabinetry, and rail manufacturing. For larger clients, cost savings from simulated painting — includ- ing reduced material and operational expenses — can run into the millions, Wallace said. e company estimates SimSpray enables students to complete 80-plus virtual painting projects in the time required for 12 traditional projects. at added practice helps learners build muscle memory and confidence while learning from mistakes. "Mistakes made in VR stay in VR, but learning from failure is the best way to translate to real-world success." Wallace said. "Painting mistakes in the real world — for instance, on a 30-foot tail fin on a plane — can be very costly." e product is used by industry giants like Boeing, Airbus, Caterpil- lar and even the U.S. Army and Royal Canadian Air Force. e International Union of Painters and Allied Trades has incorpo- rated VRSim's SimSpray system into training programs at more than 70 locations nationwide. Wallace estimates that VRSim's spray-painting and coating technolo- gies — oen customized for specific parts — now make up about 60% of the company's client base. Incorporating AI A growing market for VRSim — one accelerated by the COVID-19 pandemic — has been health care. "Access to patients, or even traditional mannequin-based simula- tions for training were not an option during COVID," Wallace said, "so we had to create a different way to deliver patient-care training." In 2022, the company launched VRNA, a virtual healthcare training program that debuted with a module for certified nurs- ing assistants. A second module, for emergency medical services, launched in 2024. Educators and healthcare organizations are turning to VR technolo- gy to help address ongoing shortages in entry-level roles, Wallace said. rough VRNA, learners engage in immersive simulations that mirror real-world scenarios — including treating heart attacks and drug overdoses, performing CPR, delivering a baby at home and setting broken bones. "All educational scenarios align to state and national skill and certi- fication requirements," Wallace said. He points out that VR is not in- tended to replace instructors, but rather to enhance blended learning. Chris DeRosa, an emergency medical technician (EMT) trainer at Bullard-Haven Technical High School in Bridgeport, said VRSim's vir- tual training tools benefit his students. "My students are eager to use VR," said DeRosa, who has incor- porated virtual reality learning over the past year. "e program can also be projected onto a screen so students can help each other, which provides motivation and makes them want to participate." DeRosa said the technology has led to more students using VR aer school — and that extra time is paying off. Last March, despite only two months of formal EMT training, two of his student teams finished second and third in a statewide SkillsUSA competition. "e VR repetition really helped them prepare for the competition," he said. "Constant retraining is going to be a key component for employees across multiple sectors. And it's got to be faster, less expensive and effective in the results it delivers." — Matthew Wallace Continued from previous page