Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan.

VTubing, or virtual YouTubing, is a form of digital content creation where anime-style avatars—powered by motion capture and voice acting—engage audiences through livestreams, gaming, and interactive entertainment. This industry has rapidly evolved from niche internet culture into a multi-billion-dollar market, blurring the lines between content creation, technology, and intellectual property (IP).

In this episode, we are joined by Sasuke Shimomura, Chief Strategy Officer of Brave group, one of Japan’s leading VTuber production companies. Brave group is a global digital IP company which mainly consists of 3 business segments: IP Production which mainly focuses on VTuber production, IP Platform and IP Solution which focus on distribution and enhancing the monetization of digital IP.

After graduating from Waseda University, Sasuke started his career in the Equity Research Division at Goldman Sachs Japan. He then played a key role in corporate planning, creator strategy, and M&A at UUUM Co., Ltd., Japan’s largest influencer management company. He was also CFO of SoVa Inc., where he oversaw fundraising efforts from the company’s founding. Sasuke later joined Eight Roads Ventures Japan, focusing on investments in Entertainment and Media, while also conducting M&A exits for several portfolio companies. In June 2024, he joined Brave group as CSO.

In today’s episode we break down everything about the VTuber industry

• The VTubing movement began in 2016 with the debut of Kizuna AI, widely considered the industry’s first VTuber.
• By 2018, major production companies like Anycolor (Nijisanji) and Cover (Hololive) emerged, professionalizing the space and scaling VTuber operations.
• Different styles of VTubing:
  • 2D VTubing: An animated illustration that syncs with the talent’s real-time movements.
  • 3D VTubing: Uses motion capture technology to replicate full-body movement in a 3D virtual space.
  • 2.5D Hybrid: A mix of virtual and real-world performances, where VTubers also appear in person
• The VTuber industry operates much like traditional entertainment businesses, with diverse monetization strategies: live streaming revenue, merchandising, advertisement tie-ups, direct fan monetization (ex. fan clubs), and IP expansion (ex. anime adaptations).
• While similar to a typical talent agency like K-pop’s YG group, VTubing agencies like Brave group hold the rights to all of their IP, allowing for greater revenue diversification.
• VTubing is a rapidly growing market with the potential to reach anime’s $20B+ industry size.
• Emerging technologies like AI, Virtual Reality (VR), Augmented Reality (AR), and Blockchain will diversify and expand revenue opportunities.
• AI is already being leveraged in processes like illustration, but larger shifts such as 24/7 AI streaming or “AITuber” are likely coming in the near future.
• Being a globally successful IP powerhouse requires 1. A deep understanding of content 2. The right technology 3. A cultural understanding to bring the content to the global market 4. A strong financial strategy to execute.

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