VTuber talent management organization VShojo will be shutting down its operations, as mentioned in a statement by its CEO, Justin "Gunrun" Ignacio. He revealed that the company has failed to raise revenue through its business model and is now bankrupt.The statement, made in a post on X on July 24, 2025, comes just days after major names associated with VShojo announced that they were no longer affiliated with the company. Many mentioned that the company owed them unpaid revenue.In the post, made through VShojo's official X account, Justin wrote:"VShojo has failed, and I've mismanaged the company into the situation you're all witnessing. So today I am sharing the difficult news that VShojo is shutting down, and I take full responsibility for the decisions that led us to this point.""I am deeply sorry": VShojo CEO reveals that the company "ran out of money" despite fundraising effortsVShojo has been the center of controversy in the recent past after popular VTubers like Ironmouse and Kson officially announced they would be leaving the organization due to not being paid funds owed to them. Soon after, other VTubers within the company's roster also announced their departure, with many releasing statements about the situation through social media and live broadcasts.In an official statement released on X, VShojo CEO Justin Ignacio claims that the organization managed to raise around $11 million over the past few years to run its business model. He claimed that the money raised was invested in ensuring a "talent-first approach."However, Justin claimed the company still failed to generate further revenue to sustain its functioning. He wrote:"Our funding went directly to our creators through generous splits, debut investments, infrastructure, concerts, events, and staffing, all designed to support them. We also wanted talent to own their IP, which we knew was a unique creator-first approach for an agency. However, despite all our efforts, the business failed to generate the revenue we needed to sustain that model, and eventually, we ran out of money."Justin also addressed the recent allegations made by Ironmouse about the mismanagement of funds meant for the Immune Deficiency Foundation by VShojo, with the organization not receiving $500,000 she raised through her subathons. He wrote:"Additionally, I acknowledge that some of the money spent by the company was raised in connection with talent activity, which I later learned was intended for a charitable initiative. At the time, we were working hard to raise additional investment capital to cover our costs, and I firmly believed, based on the information available to us, that we would be able to do so and cover all expenses. We were unsuccessful in our fundraising efforts. I made the decision to pursue funding, and I own its consequences."Towards the end of the message, he apologized to the VTubers formerly affiliated with the organization, as well as the staff and VTubing community that had supported them over the past years:"I am deeply sorry to all the talents, staff, friends, and community members who believed in our brand. You did not deserve this."Before this, the CEO of VShojo Japan mentioned during a broadcast with Kson that the company had not been "tracking the money" that it was dealing with appropriately, eventually seeing the company fall into financial trouble.