BPI invests in Japanese company Kasagi Labo – revolutionising the anime industry through innovation and global expansion.
At Burda Principal Investments (BPI), we are committed to supporting visionary founders who are pushing the boundaries of technology and reshaping industries. Today, we are excited to announce our recent investment in Kasagi Labo, a pioneering company transforming the anime industry by bridging the gap between Japanese content creation and global audiences.
The Opportunity: Globalising Japan’s Anime Industry
Anime is no longer solely a cultural phenomenon within Japan, it has become a global force, captivating audiences across different age groups but particular the growing Gen X, Millennials and Gen Z cohorts, worldwide. Despite its popularity, the traditional anime industry has struggled to keep pace with the international demand due to its complex and insular production model. The industry’s structure, challenged by long production cycles, slow decision-making processes, and the control of production committees, has limited the ability of Japanese studios to effectively expand their content beyond domestic borders.
As the global demand for anime continues to grow, there is a pressing need for a new approach – one that embraces the opportunities presented by global platforms and new distribution models. Kasagi Labo has recognised this gap and is positioning itself as a key player in the industry’s future by streamlining production processes and accelerating global expansion.
A Disruptive Solution: Kasagi Labo’s Innovative Business Model
Pioneering in the anime industry, Kasagi Labo is implementing a disruptive business model that addresses the limitations of the traditional anime production. The company is partnering with smaller Japanese studios and IP owners with strong domestic presences but limited global reach, due to a lack of resources and know-how to expand globally. These partnerships simplify decision-making and enhance monetisation across the entire content lifecycle. This approach enables Kasagi Labo to leverage well-established domestic IPs with large but underutilised global fanbases.
One of Kasagi Labo’s core strengths is its deep understanding of the cultural dynamics within the Japanese anime industry. The leadership team has cultivated strong relationships with multiple players within the industry, allowing the company to navigate the complex landscape with agility and adaptability. This cultural insight, coupled with a streamlined decision-making process, gives Kasagi Labo a significant competitive advantage over larger, more bureaucratic international studios.
Amidst the evolving landscape, Kasagi Labo’s innovative approach goes beyond content production, aiming to transform the entire value chain of anime production and distribution. As it stands, the company plans to monetise the licensing of anime IP across anime production (including sequels or future seasons), game development and film adaptation etc. with more planned here for the future. By focusing on owning or controlling IP, the company can align production with global market demands and diversify revenue streams through merchandise, music, and fan engagement platforms, rather than relying solely on streaming. Merchandising will in particular prove their capabilities in international monetisation for IPs with products such as phone cases and apparel based on anime IPs that they have licensed.
Our Investment Thesis: Supporting Innovation in the Creative Industries
At Burda Principal Investments, we’ve invested in Kasagi Labo because we believe the company is uniquely positioned to reshape the anime industry for a global audience. Their innovative approach to anime production has the potential to accelerate the globalisation of Japanese anime, making high-quality content accessible worldwide. We are particularly impressed by Kasagi Labo’s strong leadership, which combines deep industry knowledge with a forward-thinking vision, effectively bridging Japan’s rich anime heritage with global market demands.
Our decision to invest in Kasagi Labo aligns perfectly with our broader investment thesis in the creative industries. We are committed to backing companies that are innovating within their sectors and expanding their cultural influence globally. Kasagi Labo’s strategy of leveraging existing IPs and enhancing their global reach resonates deeply with this mission.
Kasagi Labo represents a transformation in the anime industry, where traditional practices are being reimagined to meet the demands of a global audience. We are excited to support the company’s journey in bringing high-quality Japanese anime around the world, contributing to the evolution of the industry and fostering a new era of global cultural exchange.
For more information about Kasagi Labo and the company’s progress, please visit here.