Digital Domain Media Group, creators of a Tupac Shakur hologram that rocked this year's Coachella festival, said Monday it has raised $10.5 million to help build a roster of virtual stars.

In a statement, Digital Domain -- listed on the New York Stock Exchange -- said it has sold a blend of common stock and warrants "to a select group of institutional investors" whom it did not identify.

"This additional funding will enable us to move ahead rapidly with the great opportunities presented by our new virtual performer business," said chief executive John Textor.

It will also help cover the costs of a virtual Elvis Presley as envisioned under a deal announced last week with CORE Media Group, which owns the image rights to the late king of rock 'n' roll, Textor added.

Digital Domain, best known for computer-generated cinema graphics, developed the life-like hologram of slain rapper Shakur that appeared with Snoop Dogg and Dr Dre at the Coachella festival in southern California in April.

Last week the Hollywood Reporter, a trade journal, reported that another technology company, Digicon Media, is working on a virtual Marilyn Monroe that would headline a series of concerts later this year.