Media startup Unit1 Studio raises £20m led by Balderton with Mercuri
This article covers Unit1 Studio, a media startup, raising £20m in a growth funding round to scale its production of hyper-realistic avatar concerts and commercialise shows that can be replicated and relocated more cheaply than existing one-off productions. It aims to support legacy artists and rights holders by lowering the cost and complexity of staging and moving avatar shows, affecting venues, promoters and audiences in the UK music and creative industries.
Unit1 Studio, a media startup, has raised £20m in a growth funding round to scale its production of hyper-realistic avatar concerts and commercialise shows that can be replicated and relocated more cheaply than existing one-off productions. The cash will bankroll further development of its end-to-end avatar concert technology and the purpose-built Tileyard London studio where the company demonstrated the feasibility of moving a full avatar production between venues.
Why it matters
Avatar concerts — digitally recreated, hyper-real performances of artists who no longer tour — have drawn mainstream attention since ABBA Voyage, but the model has largely remained a high-cost, single-location proposition. If Unit1 can materially lower the cost and complexity of producing and moving these shows, it could open the format to a wider group of legacy artists and new audiences, creating fresh commercial avenues for catalogue acts and new immersive experiences for fans.
The company’s recent relocation of a KT Tunstall avatar showcase from Hammersmith to Tileyard London is presented as the first proof that an avatar production can be moved and reassembled in a new purpose-built space. That technical and logistical capability matters because it affects how many shows can be run, where they can play, and how rights holders monetise historic performances.
Inside the product
Unit1 describes itself as an end-to-end avatar concert producer. Its work combines live staging, VFX and AI-enhanced CGI to create performances intended to bridge screen content and live venue experience — aiming at audiences who discover music on platforms such as TikTok and Netflix while also appealing to longtime fans.
The company’s creative and technical team includes Creative Director Jonathan Butterell, known for Everyone’s Talking About Jamie, and Technical Director Pavle Mihajlovic, co-founder of video game studios Electric Saint and Flavourworks. Unit1 has also added VFX talent Greg Meeres Young, whose credits include Planet of the Apes and Lord of the Rings, and Sefki Ibrahim, who worked on ABBA Voyage. The company will use its Tileyard London site both to stage productions and to continue developing the studio workflow that enables replication and relocation.
Unit1 says it is developing a roster of shows and that the financing combines an oversubscribed equity round with additional production financing to support both technology and operations.
Who are the investors?
The round was led by Balderton and included participation from Mercuri, Gilston Music and artist manager Paul McGuinness. The financing combines equity capital with production finance to fund development and touring-ready staging of multiple avatar shows.
Daniel Waterhouse, General Partner at Balderton, said:
Until now, avatar concerts have been locked behind the economics of ABBA Voyage - a one-off, one-location proposition. Unit1's innovative new technology will fundamentally change that, opening up the genre to a whole generation of legacy artists. Barney is hugely respected in the industry and has managed to solve a structural problem that everyone knew existed but nobody had cracked. As a founder, Barney brings a unique blend of creative vision and commercial nous to every project that he sets his mind to, and having followed his journey for many years I couldn't be more delighted to formally partner for the next chapter of Unit1.
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Founder perspective
Barney Wragg, Founder and CEO of Unit1 Studio and former CEO of Andrew Lloyd Webber's Really Useful Group, said:
Unit1 is, and will always be, about expanding the connection between fan and artist regardless of time or geography. ABBA Voyage proved audiences love avatar concerts but the development and relocation costs have meant the opportunity of avatar concerts is not being realised. Our ability to develop these shows at a fraction of the cost and replicate them to any location finally makes these shows a commercial reality. The combination of our technology, new financing and our growing team, means we can develop shows for artists and fans worldwide.
The leadership team also includes John Kennedy, former CEO and Chairman of Universal Music UK and IFPI, as a non-executive director, reflecting the company’s ties to the recorded-music sector and rights holders.
The bigger picture
The deal sits at the intersection of media, live entertainment and immersive technology. For the UK music and creative industries it underscores growing investor interest in business models that monetise legacy catalogues through new formats. If Unit1’s technical claims hold up at scale, the model could shift how events are programmed and how artists and rights owners think about long-tail revenue.
At a time when venues, promoters and artists are exploring alternative revenue streams, the success of avatar concerts beyond flagship projects will depend on cost structures, licensing arrangements and audience demand. The Unit1 raise suggests at least some investors believe those pieces can be aligned in the UK and European markets.
They've invested in Unit1 Studio
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