Baobab Studios raises $25 million to make VR animated entertainment

Baobab Studios has raised $25 million to create a new kind of animated film entertainment in virtual reality. The company has already launched successful VR animated shorts such as Invasion!, a funny title dreamed up by Baobab’s creative team, which includes Madagascar director Eric Darnell, a cofounder of Baobab.

The success of Invasion! and its subsequent episode Asteroids! — as well as the pedigree of the company’s founders — have made Baobab into a very valuable startup. Baobab has raised $31 million to date.

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Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.