VShojo VTuber Agency

Days after the bombshell exit of top talent Ironmouse as well as the mass exodus of its VTuber talents, US-based VTuber agency VShojo has officially shuttered its operations following an official statement posted on X (Twitter). The statement, written by its CEO, Justin 'GunRun' Ignacio, cites financial challenges faced by the company as well as its inability to sustain the business model in the long run.

'I Take Full Responsibility'

In the statement, Gunrun has acknowledged that VShojo has 'failed' as a company, and that he takes full responsibility for everything that has led up to this point.

'I've been doing everything I can to fundraise and right my ship these past few months, but despite my efforts, we are in a worse position, and those I care about are now paying the price,' he said.

He also mentioned in the latter part of the statement that, despite their initial $11 million (£8.14 million) funding round, subsequent efforts to raise additional funds have been unsuccessful, and that he bears the consequences.

'I am deeply sorry to all the talents, staff, friends, and community members who believed in our brand. You did not deserve this,' he added.

More on VShojo's Funding–And Challenges

Gunrun also stated that they raised the $11 million (£8.14 million) as part of its plans to pursue a 'bold, talent-first approach in VTubing, prioritising creators and community over short-term profits to achieve long-term sustainability.

Said funding references its 2022 funding round, where it saw venture capital firm Athos Capital leading said funding, with support from GFR Funds and Green Bay Ventures. In it, VShojo previously stated that the funding will be directed toward supporting new technology, merchandise, content creation and presence at events such as major conventions in the gaming and anime scenes.

'We also wanted talent to own their IP, which we knew was a unique creator-first approach for an agency. However, despite all our efforts, the business failed to generate the revenue we needed to sustain that model, and eventually, we ran out of money,' Gunrun added.

Unaware of Charity Funds?

It is worth noting that Gunrun also mentioned funds related to charity, stating that he only later learned the funds were intended for a charity, and initially understood them to be additional funding for the talents.

'I acknowledge that some of the money spent by the company was raised in connection with talent activity, which I later learned was intended for a charitable initiative. At the time, we were working hard to raise additional investment capital to cover our costs, and I firmly believed, based on the information available to us, that we would be able to do so and cover all expenses,' he explained.

However, Gunrun never specifically mentioned whether the charity in question is the Immune Deficiency Foundation (IDF), which has been the primary charity promoted by Ironmouse — and one at the centre of the VTuber's allegations that VShojo owed over half a million dollars to the charity.

'The thing that hurts me the most is that the Immune Deficiency Foundation, which is the most important charity to me and also the reason why I'm here today, is owed over half a million dollars from VShojo ... I really want to tell you everything, but unfortunately right now I have been instructed by my attorney to wait for more of the legal procedure to unfold,' Ironmouse previously said.

'You're Not Sorry It Happened': Fans, VTubers React to Gunrun's Claims

Following the posting of the statement, fans were quick to call out Gunrun's claims, especially those related to the company's finances. One of the first to react was Kson, a talent of VShojo, who announced her exit from the agency live on stream alongside VShojo's CEO for Japan.

'Why didn't you let us know the moment you realised this situation? Why did I get the information 2 weeks ago, not from the company but from my home girls?? Why did you lie to the JP branch a week ago that everything was good and taken care of?', she posted.

Meanwhile, popular indie VTuber Shylily called out the CEO's 'b*llshit claims', adding that she feels terrible for the talents who have now left the agency.

'Brother, you've somehow been bleeding 11 million l while maintaining the most successful & biggest VTuber roster in Western EN History and figured that'd all just go away on its own?!,' she remarked.

AmaLee, who was also previously a VShojo talent, mirrored her disappointment with VShojo operations on her previous experience with Copium Merch. In this custom merchandise service, she was previously owed over $60,000 (£44,388.06) in past revenue.

Meanwhile, full-time music composer StarlightDaryl also shared that there are 'no words' that can adequately describe her anger and disappointment in VShojo and Gunrun following this fiasco, adding that she was friends with Gunrun and that she genuinely believed in VShojo's mission back then.

'I feel betrayed and heartbroken, but that pales in comparison to what the talents are going through. They need our support now more than ever,' she said.

As more fans and other content creators continue asking for more accountability from Gunrun regarding the agency's financials and the fate of funds dedicated to its former talents, the VTuber community will continue to remember VShojo's fiasco as a shift in supporting the independent side of VTubing and becoming more cautious with dealings with corporate agencies.

Writer's pick