Virtual Influencer Startup Brud Reaches $125 Million Valuation
The creators of virtual celebrity Lil Miquela are closing a major new funding round that values the company at $125 million, sparking a wave of investor interest in digital avatar startups.
The company behind the virtual celebrity Lil Miquela, known as Brud, is currently closing a new funding round between $20 million and $30 million. This investment round, led by Spark Capital, gives the Los Angeles-based startup a pre-money valuation of at least $125 million. The digital character hints at the news to her 1.5 million followers, though the company itself declines to publicly comment on the exact financial details.
Brud is not the only startup attracting venture capital in this space, as new companies like Shadows, SuperPlastic, and Toonstar are also developing virtual characters. These new digital avatars launch across social media platforms like Instagram and Snap, often avoiding the uncanny valley effect that Miquela famously embraces. Investors view this trend as the rise of a new, scandal-proof studio system that operates independently of unpredictable human personalities.
This modern wave of virtual entertainment builds on a long cultural history that includes animated acts like Gorillaz and virtual pop stars like Hatsune Miku. With Brud leading the charge in the United States after previously raising $6 million from Sequoia Capital and others, experts predict a massive influx of digital content studios. Industry observers expect 2019 and 2020 to bring a massive proliferation of these computer-generated personalities across the internet.