Japan-based Brave group announced on April 22 that it had secured more than ¥8 billion (approximately $50 million) in a Series E funding round. The round combined a third-party allotment share issuance with debt financing.
Founded in 2017, the company has established numerous subsidiaries in Japan and overseas, spanning a range of businesses related to VTubers.
Three business pillars: production, platform, and development
VTuber—short for “virtual YouTuber”—refers to video content in which a 2D or 3D digital avatar, rather than a live human performer, takes center stage.
Brave group identifies three core business areas related to VTubers:
- IP Production
- IP Platform
- IP Solution
IP Production covers the management of VTuber talent themselves. The roster spans groups targeting individual countries as well as those pursuing global reach; the company’s official website lists at least 14 VTuber groups.
IP Platform encompasses the businesses surrounding those IPs, including e-commerce storefronts and fan communication platforms. IP Solution covers the development of IPs and XR (extended reality) technologies and other.
All three business areas are operated through the company’s group subsidiaries.
The company also handles IP businesses for third-party character properties. On April 21, the day before the Series E announcement, it was revealed that group subsidiary Smarprise would handle sales of Hello Kitty-related content.
CEO vows to “accelerate cross-border IP expansion”
The Series E round is believed to have involved 16 equity investors through a third-party allotment and three banks providing loans. Among the participants likely to be classified as strategic investors are REALITY, operator of a live-streaming app; Thirdwave Corporation, which runs the Dospara PC retail chain and has esports operations; NHN JAPAN, a Japan-based IT company with Korean roots; and Nippon Broadcasting System, a commercial radio broadcaster.
The company said proceeds will be directed toward four priorities: accelerating global expansion, diversifying its IP business, investing in technology, and pursuing strategic M&A and alliances.
Brave group CEO Keito Noguchi said: “Raising over ¥8 billion in Series E, and reaching a cumulative total of ¥14 billion, is a testament to the strong confidence our investors have placed in our mission of bringing Japan’s spirit of adventure to the world.” He added: “Working alongside our partners, we will strengthen our management foundation and press forward in becoming a truly global company that leads Japan on the world stage, accelerating cross-border IP expansion at full speed.”
