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Japan’s Cluster secures $7.7M in series C to enhance VR hangout and performance platform

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See the original story in Japanese. Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) platform under the same name supporting thousands-scale events in VR space, announced today that it has secured 830 million yen (about $7.7 million) in a series C round. This follows their series B round back in September of 2018 and brings their total funding raised so far to 1.48 billion yen ($13.7 million). Participating investors in the latest round are KDDI Innovation Fund (operated by KDDI and Global Brain), TV Asahi Holdings, Gree’s virtual YouTuber management agency Wright Flyer Live Entertainment (WFLE), 31Ventures (operated by Mitsui Fudosan and Global Brain), and several angel investors. Cluster has partnered with TV Asahi and WFLE for joint business development. Since its official launch back in May of 2017, Cluster has been acquiring gaming companies and virtual YouTuber agencies as clients to provide VR-powered live music and other performance events for viewers. They could offer only one paid event back in 2018 but was seeing solid growth by serving about 100 events last year alone thanks to higher demand promoting virtual YouTubers. Since users are able to hold VR events for free on the platform, the company…

Image credit: Cluster

See the original story in Japanese.

Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) platform under the same name supporting thousands-scale events in VR space, announced today that it has secured 830 million yen (about $7.7 million) in a series C round. This follows their series B round back in September of 2018 and brings their total funding raised so far to 1.48 billion yen ($13.7 million).

Participating investors in the latest round are KDDI Innovation Fund (operated by KDDI and Global Brain), TV Asahi Holdings, Gree’s virtual YouTuber management agency Wright Flyer Live Entertainment (WFLE), 31Ventures (operated by Mitsui Fudosan and Global Brain), and several angel investors. Cluster has partnered with TV Asahi and WFLE for joint business development.

Since its official launch back in May of 2017, Cluster has been acquiring gaming companies and virtual YouTuber agencies as clients to provide VR-powered live music and other performance events for viewers. They could offer only one paid event back in 2018 but was seeing solid growth by serving about 100 events last year alone thanks to higher demand promoting virtual YouTubers.

Since users are able to hold VR events for free on the platform, the company monetizes by helping companies produce and hold their events. This B2B2C (business-to-business-to-consumer) model worked well, which helped them improve their cash flow. Because of the growth of viewers from overseas as more events are being organized, Cluster is planning to more focus on global expansion. The company also further develop the platform to support more head-mounted display models including Oculus Quest while it can now work with HTC Vive and Oculus Rift only.

Regarding partnerships with investors participating in this round, Cluster will work with TV Asahi to develop content and TV programs using VR, with KDDI to develop content optimized for 5G networking that enables high bandwidth and low latency connectivity in addition standalone VR that requires no desktop for image rendering, will work with WFLE to integrate their Reality app so that their users can view and participate in events on the Cluster platform. Going forward, the company also plans to enhance it so that real human artists can also perform with virtual YouTubers on the platform.

Naoto Kato, founder and CEO of Cluster, said:

As apps like Mirrativ are being emerged, more individuals want to have their own avatar. I would like to offer user experience allowing such avatars to participate and give virtual gift items each others across different platforms while I don’t think all these functions can be provided by one company. […]

With the business model in place, we will focus on cultivating the content through this financing. We would like more gaming companies and animation studios to use the platform as one not only for live music events and concerts but also for various virtual events.

Not to mention engineers focused on system development, the company will strengthen hiring people for business and content development. While Cluster’s simultaneous viewership record is about 30,000 so far, the company aims to hold larger events attracting a six- to seven-digit number of people in the future.

Japan’s Cluster secures $3.6M series B to develop own VR live show content

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See the original story in Japanese. Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) app under the same name supporting thousands-scale events in VR space, announced on Wednesday that it has secured 400 million yen (about $3.6 million) in a series B round. The participating investors in this round are XTech Ventures, Global Brain and KDDI. Cluster also announced that Hiroki Teshima, General Partner at Tokyo-based VC firm XTech Ventures, will join the VR startup’s board as an outside director. With the funding at this time following the previous series A round, the company has raised a total of about 650 million yen ($5.9 million) to date. Using the funds, they will create a studio to produce their own content, aiming to spread their VR user experience to more people. VR live performances using the Cluster platform has been receiving favorable reviews. Virtual talent Luna Kaguya’s live event hosted (by Sony Music Labels’ Sacra Music) back in August sold a VR event ticket  for 5,000 yen ($45) and the public viewing ticket for 3,000 yen ($27). At the live event for another virtual talent Phi that took place in July, not only his on-stage performance but also…

cluster-investor-team
The Cluster exec team with investors particpating in a series B round
Image credit: Cluster

See the original story in Japanese.

Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) app under the same name supporting thousands-scale events in VR space, announced on Wednesday that it has secured 400 million yen (about $3.6 million) in a series B round. The participating investors in this round are XTech Ventures, Global Brain and KDDI.

Cluster also announced that Hiroki Teshima, General Partner at Tokyo-based VC firm XTech Ventures, will join the VR startup’s board as an outside director. With the funding at this time following the previous series A round, the company has raised a total of about 650 million yen ($5.9 million) to date. Using the funds, they will create a studio to produce their own content, aiming to spread their VR user experience to more people.

cluster-kaguya-luna-live
Live performance by virtual talent Luna Kaguya in August
Image credit: Cluster

VR live performances using the Cluster platform has been receiving favorable reviews. Virtual talent Luna Kaguya’s live event hosted (by Sony Music Labels’ Sacra Music) back in August sold a VR event ticket  for 5,000 yen ($45) and the public viewing ticket for 3,000 yen ($27). At the live event for another virtual talent Phi that took place in July, not only his on-stage performance but also staff meetings, backstage operations  and stage directions were being also held using the VR platform to showcase to the audience.

In an interview with The Bridge, Cluster CEO Naoto Kato told us one or two large events a month usually take place on the platform while mostly small events take place every week. Hosting an event on the platform doesn’t cost at all, which motivates organizers to conduct their shows as a profitable business or even on a test basis.

We’d been wanting to perform live music on the cluster platform, so we turned it into reality. However, we don’t mean to create a metaverse.

We want to develop a marketplace that allows users to sell and buy virtual experiences like space trips — Amazon for virtual experiences.

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Live perfomance by virtual talent Tokinosora (content modified for privacy protection)
Image credit: Cluster

Kato says, from the business model perspective, VR-based show business is similar to that for the social game industry. A social game title usually takes one to two years and costs at least several million US dollars to complete its development. Regarding whether it will be a smash hit or not, every bullet has its billet. Compared to social game development, virtual talents or their performances can conduct trial-and-error experiments in a shorter cycle and for a lower cost. The trending wave of social waves may turn its direction towards virtual talent-powered VR events in the near future.

Kato added:

We think we are in a “bonus stage” this year where we make it possible to host VR-powered live performances by virtual talents. We could convinece people that we can make a profitable business by offering these experiences.

We want to develop a good experience before the bonus stage ends. I guess it will be a do-or-die game for us next year. To make the first-ever experience in Japan or in the world, I want to massively continue working with my like-minded- colleagues full of energy.

Edited by “Tex” Pomeroy

Japan’s Cluster secures $1.8M series A to put VR hangout concept into showbiz industry

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See the original story in Japanese. Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) app under the same name supporting several thousand people-scale events in VR space, announced on Wednesday that it has secured 200 million yen (about $1.8 million) in a series A round. The participating investors in this round include Avex Ventures (the investment arm of Japanese showbiz giant Avex Holdings Group), United (TSE:2497), DeNA (TSE:2432) and Skyland Ventures, plus undisclosed individual investors. This funding succeeds the one with the total of 50 million yen (about $450,000) from Skyland Ventures, East Ventures and unnamed individual investors in its angel round in April of last year. Along with this, Cluster and Avex Holdings Group (TSE:7860) announced they have agreed to a business partnership. With this money, Cluster is going to advance business collaborations with enterprises having popular contents, as well as improve its product including the multi-device support covering smartphone or mobile VR. See also: Japan’s Cluster to launch social VR hangout rooms for live events and gatherings Cluster had taken part in the Demo Day of Avex Enter-Tech Pitch 1st batch and made a pitch there. Unlike typical accelerator Demo Days, this event was held in the…

See the original story in Japanese.

Tokyo-based Cluster, the Japanese startup behind the social VR (virtual reality) app under the same name supporting several thousand people-scale events in VR space, announced on Wednesday that it has secured 200 million yen (about $1.8 million) in a series A round. The participating investors in this round include Avex Ventures (the investment arm of Japanese showbiz giant Avex Holdings Group), United (TSE:2497), DeNA (TSE:2432) and Skyland Ventures, plus undisclosed individual investors.

This funding succeeds the one with the total of 50 million yen (about $450,000) from Skyland Ventures, East Ventures and unnamed individual investors in its angel round in April of last year.

Along with this, Cluster and Avex Holdings Group (TSE:7860) announced they have agreed to a business partnership.

With this money, Cluster is going to advance business collaborations with enterprises having popular contents, as well as improve its product including the multi-device support covering smartphone or mobile VR.

See also:

Cluster had taken part in the Demo Day of Avex Enter-Tech Pitch 1st batch and made a pitch there. Unlike typical accelerator Demo Days, this event was held in the semi-closed style with only Avex staffers and invited guests such as people concerned in the startup ecosystem, in order to explore opportunities of the open innovation between Avex and startups. At the Demo Day, Cluster won the Masato Matsuura Award and the prize winning led the financial / business partnership this time.

Naoto Kato (CEO of Cluster, right) is awarded the prize from Masato Matsuura (CEO of Avex Holdings Group, left) at Avex Enter-Tech Pitch in April.
Image credit: Masaru Ikeda

The detail of this business partnership is not disclosed yet, but Kato’s pitch and the conversation with the judges at the Demo Day suggest that Avex had held various real events all around Japan featuring artists belonging to Avex and it is considered that Avex will look for a way to offer  these kinds of performances in VR with Cluster. In addition, an Avex-affiliated company Avex Pictures owns major animation titles such as Yuri on Ice or Osomatsu-san, the business tie-up leveraging VR is expected also in this field.

According to Cluster CEO Naoto Kato, a function enabling to sell tickets only to limited users to participate in closed-style VR events is already implemented to the Cluster app. Kato said the app matches Asian culture or animation voice actors well and he is expecting a lot from the partnership with Avex also as to this point.

Translated by Taijiro Takeda
Edited by “Tex” Pomeroy

Japan’s Cluster to launch social VR hangout rooms for live events and gatherings

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See the original story in Japanese. Tokyo-based Cluster is developing a virtual reality (VR) platform under the same name capable of holding events on a participant scale of thousands in a metaverse. The company announced this week that it will launch the official release of the service in May while unveiling a sneak peek. Together with this announcement, they revealed a teaser page and started accepting user pre-registration for the official release. Compared with the alpha version released last year, the official version added a function that allows users to create rooms of their own in VR. Users can share it by a hashed unique URL, and only users who know it can enter the same room and share experiences. Currently, users can only select the room from around ten kinds of prepared variations, such as a conference room or a living room, but the company has looked at making it necessary for users to design the room by themselves in the future. One other interesting feature of the official version is the ability to screen share in VR. Users gathered in one room can see the same image on the screen provided in the room in VR. Because you…

See the original story in Japanese.

Tokyo-based Cluster is developing a virtual reality (VR) platform under the same name capable of holding events on a participant scale of thousands in a metaverse. The company announced this week that it will launch the official release of the service in May while unveiling a sneak peek. Together with this announcement, they revealed a teaser page and started accepting user pre-registration for the official release.

Compared with the alpha version released last year, the official version added a function that allows users to create rooms of their own in VR. Users can share it by a hashed unique URL, and only users who know it can enter the same room and share experiences. Currently, users can only select the room from around ten kinds of prepared variations, such as a conference room or a living room, but the company has looked at making it necessary for users to design the room by themselves in the future.

One other interesting feature of the official version is the ability to screen share in VR. Users gathered in one room can see the same image on the screen provided in the room in VR. Because you can project games and YouTube screens here, it is also possible for multiple users to discuss their opinions while watching video content or to share their experiences while watching live sports broadcasts.

Incidentally, the broadcasting of TV shows and the sale of DVDs is premised on the idea of individual viewers. It is assumed that families and friends who gather in the same place to appreciate them together is permissible. There is currently no clear law or precedent to define how many people (or under what circumstances) are permitted to watch together in a “shared space” in VR.

From his personal perspective, if up to several people gathered in VR were watching the same content together using the WebRTC-based version of Cluster like they would for a house party, Cluster CEO Naoto Kato conjectured that it could possibly be interpreted as them in an actual living room to view it.  However, as it is possible for thousands of people to share the same event space at the same time in VR by making full use of Cluster’s back-end servers and CDN (content delivery network), there is a high possibility of conflict with copyright infringement, and in this case it would be necessary to take measures to avoid this.

On the flipside, if a content holder or licensee hosts an event, it would be possible to provide an environment where multiple users could view the same movie or live sports broadcast publicly on Cluster. Here we can imagine any number of business opportunities.

The key idea behind the development of Cluster is the ability to stay where you are most comfortable. Kato noted that just the other day he took the stage at an event in Shibuya, Tokyo and how troublesome it was to have to take the Yamanote line train from his office in Gotanda (just three stops from Shibuya, a ten-minute ride). Considering the time and cost of travel, the cost and logistics it takes to ensure places where large numbers of people can gather, and the business people who have run around all day, Cluster can be regarded as a new alternative means for companies involved in the event business.

Companies also competing in this field include America’s AltspaceVR and Japan’s EmbodyMe, launched last week, among others, but Kato noted that Cluster would like to focus on pursuing convenience, as opposed to the entertainment value of VR. To that end, it seems they are intentionally recruiting users who will participate in testing new functions and those who will hold events on Cluster with the teaser page.

In April of 2016, Cluster raised around 50 million yen (about $450K US) from Skyland Ventures, East Ventures, and several individual investors in an angel round.

Translated by Amanda Imasaka
Edited by Masaru Ikeda

Tokyo-based Cluster secures $460K funding to develop VR platform for meet-ups

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Cluster, the Japanese startup behind a virtual reality(VR)-based event and environment platform under the same name, announced on Tuesday that it has fundraised 50 million yen (about US$460,000) from Skyland Ventures, East Ventures and several angel investors. Upon obtaining this funding, the company was rebranded from its previous name Fictbox. Skyland Ventures participated in the previous funding round in January. The firm apparently is targeting relative small event organizers that cannot afford to commit much money or withstand losses. The Cluster platform allows event organizers to hold meet-ups, events, and other gathering opportunities using VR without fear of booking a venue or paying a high rent. For participants, they can virtually participate in an event by wearing a headgear and communicate with each others, even from home. Thanks to recent advances in server integration technologies and a protocol optimized for Internet of Things (IoT), even if more than 1,000 connections are established simultaneously, users are unlikely to feel a heavy load on the system. via TechCrunch Japan Edited by “Tex” Pomeroy

cluster_featuredimage

Cluster, the Japanese startup behind a virtual reality(VR)-based event and environment platform under the same name, announced on Tuesday that it has fundraised 50 million yen (about US$460,000) from Skyland Ventures, East Ventures and several angel investors.

Upon obtaining this funding, the company was rebranded from its previous name Fictbox. Skyland Ventures participated in the previous funding round in January.

The firm apparently is targeting relative small event organizers that cannot afford to commit much money or withstand losses. The Cluster platform allows event organizers to hold meet-ups, events, and other gathering opportunities using VR without fear of booking a venue or paying a high rent. For participants, they can virtually participate in an event by wearing a headgear and communicate with each others, even from home.

Thanks to recent advances in server integration technologies and a protocol optimized for Internet of Things (IoT), even if more than 1,000 connections are established simultaneously, users are unlikely to feel a heavy load on the system.

via TechCrunch Japan

Edited by “Tex” Pomeroy