CELLORB Inc., a Yokohama-based esports and gaming company, has successfully raised ¥1 billion (approx. $6.7 million) in funding. This new funding marks a milestone for the company, which was born just 18 months ago from the merger of VARREL which is a pro esports team with roots dating back to 2011.
University of Tokyo Edge Capital Partners (UTEC), one of Japan’s leading venture capital firms, led the latest funding round with the aid of several other investors. After this move, CELLORB officially confirmed that it will separate from its former parent company, DONUTS Inc., and operate independently under a renewed management structure. As a result, Hiroshi Sakuma, who was the former Co-CEO of Uzabase Inc., has been appointed Director and COO to lead CELLORB’s next growth phase alongside CEO Fumio Suzuki. Adding star power to the leadership team, the board also features Hajime “Tokido” Taniguchi, a legendary Street Fighter pro with multiple Evo titles and over $250,000 in career earnings.
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In an official statement, Hiroshi Sakuma stated that “I love games. I love e-sports. I believe that games have the power to both be enjoyed by individuals and to connect people. I’m looking for people who believe in the potential of games and will join me in taking on this challenge.”
UTEC’s backing is particularly noteworthy as the firm has fueled over 150 startups since 2004, driving 20 IPOs and 22 M&A exits, including successes like ACSL, a University of Tokyo spinout revolutionizing industrial drones.
The fresh capital raised from University of Tokyo Edge Capital Partners (UTEC) will be allocated toward talent acquisition, IP development, and system expansion. The primary objective of CELLORB is to grow its esports and entertainment footprint globally and it also explicitly mentions that they want to make esports a core cultural industry for Japan, not just a form of competition.
This ambition aligns with a surging industry as Japan’s esports market is forecast to hit $391 million by 2033, with local players claiming over $41 million in international prizes.
