Vtuber Agency 'VShojo' Shuts Down Following Charity Scandal
Image Source: The Outer Haven
VShojo, the VTubing agency responsible for managing some of the biggest streamers in the world, is shutting its doors following a mass departure of its talent.
The news comes from the official VShojo Twitter page, with a statement from Co-Founder and CEO Justin Ignacio aka Gunrun, who takes full responsibility for the circumstances that lead to this sudden collapse, with much of it attributed to financial struggles within the agency, and that “despite all our efforts, the business failed to generate the revenue we needed to sustain that model, and eventually, we ran out of money.”
As previously reported, this closure stems from Ironmouse, one of the founding members of the agency, leaving due to VShojo’s failure to donate over $500,000 raised by Ironmouse for The Immune Deficiency Foundation during a 40-day charity stream. Once these allegations became public, a multitude of other VTubers would also make the decision to sever ties with the agency, with 12 of their 13 original members departing in the days since.
Ignacio’s statement also reveals that the funds raised from Ironmouse’s streams were instead spent on the company, apologizing for the mismanagement of the company. With this admission, it becomes more likely that legal action will be taken against VShojo in the near future for misuse and withholding of funds.
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You can read Ignacio’s complete statement here:
VShojo has failed and I’ve mismanaged the company into the situation you’re all witnessing.
So today I am sharing the difficult news that VShojo is shutting down, and I take full responsibility for the decisions that led us to this point.
I’ve been doing everything I can to fundraise and right the 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.
Over the past few years, we raised around $11 million to pursue a bold, talent-first approach in VTubing, prioritizing creators and community over short-term profits, to achieve long-term sustainability. Our funding went directly to our creators through generous splits, debut investments, infrastructure, concerts, events, 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.
Additionally, 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. We were unsuccessful in our fundraising efforts. I made the decision to pursue funding, and I own its consequences.
I am deeply sorry to all the talents, staff, friends, and community members who believed in our brand. You did not deserve this.
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