American VTuber talent agency VShojo is officially shutting down operations. This news is coming in the midst of a massive controversy where their founding talent, Ironmouse, accused the agency of unpaid funds. This is in addition to failing to donate $500,000 she had raised for the Immune Deficiency Foundation. Her comments led to a mass exodus of talent, where all of VShojo’s streamers left the company within 72 hours.
The CEO Speaks Out
On July 24, 2025, VShojo CEO Justin “Gunrun” Ignacio released a statement on X confirming the agency’s demise.
“VShojo has failed, and I’ve mismanaged the company into the situation you’re all witnessing,” he said. The agency had raised $11 million, but VShojo wasn’t generating enough revenue and they eventually ran out of money.
The most jarring parts of this statement are when Ignacio admits to using the money raised by talent (including the $500K donation to IDF) was used to try and keep VShojo afloat. He claimed he didn’t realize at the time that some of that money was supposed to be donated to charity. According to Ignacio, attempts to raise additional investment capital to cover all of their expenses were unsuccessful.
Where Did the Money Go?
$11 million is a lot but in VShojo’s case, it wasn’t enough.
According to the CEO, the agency spent heavily on a “unique, creator-first” model. A lot of that money was put towards:
- Generous revenue splits for streamers
- Funding high-profile debuts
- Concerts, events, and fan conventions
- Full-time staffing and infrastructure
In theory, this was a dream scenario for VTubers but dreams cost money. Since their model wasn’t generating enough sustainable income, the company was forced to find other sources of funding. The VTuber space is notoriously competitive, and most talents don’t need agencies anymore. VShojo’s bet was that a creator-first model would buy loyalty. It worked…until the company couldn’t afford to pay creators anymore.
Judging from comments made by former talent and employees, VShojo started withholding payments to their streamers to keep the lights on. Community discussions have also pointed to wasteful spending on flashy marketing and convention booths. Behind the scenes, it sounds like a perfect storm of ambition and inexperience.
What Comes Next?
VShojo is done. Most of its talent has gone independent or moved on. No plans have been announced to repay creators or make good on the missing charity donation. Thankfully, Ironmouse has already raised new funds for IDF on her own.
Legal action seems likely. Ironmouse hinted that her lawyers are involved, and other former talents may follow.
It’s dizzying to watch a company fall apart in real time. One moment, VShojo was one of the biggest names in the VTuber world. The next, it was gone, dragging a missing charity donation, and the broken hearts of their former talent with it.
📌 Changelog
- July 24, 2025: Added the statement CEO Justin “Gunrun” Ignacio made addressing the closure of VShojo.
- July 24, 2025: Date the original article was posted.
