Earlier this week, well-known VTuber Ironmouse made claims that the VShojo talent agency
had not provided her with payments owed,
including more than $500,000 intended for charitable donations generated during a highly successful Twitch subathon last fall. Now, in a surprising turn, VShojo has announced its closure, citing unsuccessful attempts to secure further investment. The CEO has also confessed to using a portion of the charity funds in a desperate effort to keep the company operational.
Justin “Gunrun” Ignacio stated
in a public announcement on X:
“I acknowledge that funds acquired through talent activities, later discovered to be earmarked for a charitable cause, were utilized by the company.” He elaborated, “At that time, we were actively pursuing additional capital investments to offset operational expenses, and I maintained a strong conviction, based on available data, that we would succeed and be able to cover all outstanding debts. Our fundraising endeavors ultimately proved unsuccessful. I made the decision to seek funding, and I accept the resulting consequences.”
Ignacio mentioned that VShojo had successfully secured $11 million in funding a few years prior. This investment was then strategically deployed to fuel the agency’s growth and capitalize on the
increasing popularity of VTubers
within the United States. This growth strategy involved organizing numerous fan events, such as concerts, and developing high-profile branded collaborations, including incorporating VTuber personalities into
video games like Smite. However, Ignacio acknowledges that the “business model failed to produce sufficient revenue to sustain itself.”
Ironmouse, while withholding specific details due to pending legal action, was not the only VTuber to sever ties with the agency this week. As of July 22nd, every VTuber on the roster has either announced their move to independent streaming or have taken a temporary break from streaming. Some VTubers claimed to have not received payments for several months. The exact amount of money owed by VShojo remains unknown, as does the likelihood of these debts being settled.
Although the agency is now ceasing operations, and the promised $515,000 donation to the Immune Deficiency Foundation may not be fulfilled, a new fundraising initiative launched by Ironmouse has already
generated over $1 million in additional funds for the organization. Her sole public response to Ignacio’s apology has been
a simple, broken heart emoji.
.