SBVA Makes First Investment in Japanese Company
Participates in $55 Million Series B Round Led by Tencent
Content Combining Virtual Characters (2D) and Real-World (3D) Performances
On May 13, SBVA announced, "We have made our first investment in a Japanese company by participating in the Series B investment round of UTAITE Inc., a Japanese intellectual property (IP) content entertainment startup, which raised $55 million (approximately 77.9 billion KRW)."
This investment round was led by Tencent, China's largest internet and gaming company, with participation from SBVA, the Development Bank of Japan, and several other investors. UTAITE's total accumulated investment now amounts to $90 million (approximately 127.5 billion KRW).
UTAITE is an entertainment startup based on subculture. The company develops and operates content centered on hybrid IP (2.5D IP) that combines animation-style virtual characters (2D) with real-world performances (3D).
In Japanese, "Utaite" means "singer." The company is characterized by providing unique experiences that cross between digital and reality, as 2D characters conduct live streaming on YouTube, and real people based on these characters engage in offline activities such as concerts and fan meetings. In Japan, the 2D virtual YouTuber market is valued at approximately 800 billion KRW, and the subculture market?including idols, animation, and doujinshi?has a scale of about 8 trillion KRW. These markets are rapidly transitioning to 2.5D, driving further growth.
UTAITE plans to focus on securing top talent, strengthening its organizational structure, and expanding into global markets. In particular, with Tencent as the lead investor, the company will actively enter the Chinese market, while also expanding its business in Korea, targeting the subculture fan base.
Park Youngjin, Director at SBVA, stated, "UTAITE is already generating operating profit with a team composed of Japan's leading star entrepreneurs, who have successful M&A experience, and key personnel in the 2D IP content field. Starting with this first investment in a Japanese company by SBVA, we plan to actively discover promising Japanese startups in various fields."
Mao Jitong, CFO of UTAITE, said, "UTAITE's rapidly growing 2.5D IP in Japan has strong growth potential in the global market as well. Korea, which has produced numerous successful IP cases globally, is a strategically important country, and we are honored that SBVA has become our first Korean investor. This will be a key asset for our global expansion."
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