The rapid rise and collapse of North America's first major VTuber agency
In short: VShojo transformed the landscape of digital entertainment by bringing anime-style avatars to the Western mainstream. However, a massive scandal involving withheld charity funds and unpaid residuals triggered a domino effect that saw nearly every member resign in just three days, leading to the company's total collapse.
Founded in 2020 by Twitch co-founder Justin 'theGunrun' Ignacio, CTO Phillip Fortunat, and COO Daniel Sanders, VShojo was established as a "talent first" agency. It aimed to empower English-speaking VTubers with resources like custom models and merchandising. By late 2021, the company achieved significant mainstream success; members Ironmouse and Veibae were ranked among Twitch's top 10 female streamers by hours watched. By February 2022, Ironmouse became the most-subscribed female streamer on the platform with over 93,000 active subscriptions.
The company expanded rapidly, raising $11 million in March 2022 to fund projects like a mobile streaming app and partnerships with mental health groups. It also launched a Japanese division in July 2022 and eventually debuted its first full Japanese generation, VShojo NOVA, in November 2024. Despite this growth, internal issues regarding compensation began to surface. In early 2023, several members like Silvervale and Veibae left the agency, with Veibae later confirming that similar issues with compensation were a primary reason for her departure.
The collapse was triggered on July 21, 2025, when Ironmouse accused VShojo of withholding over $500,000 in revenue intended for charity. Within three days, almost the entire roster resigned. Reports surfaced that multiple talents—including Kuro Kurenai and Michi Mochievee—were owed streaming residuals that were never paid. By July 24, 2025, VShojo admitted it had improperly spent the charity money and announced it was ceasing operations due to having run out of funds.
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Sources
- Summary by Intellect · source: VShojo
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