China’s Pixar dream wins VC support

The domestic cinema market is booming, with box office receipts reaching $3.6 billion last year, up 27.5% from 2012, according to the State Administration of Radio, Film & Television. Takings of $4.6 billion are expected in 2014.

The prospects for animated feature films are strong, but home-grown producers have struggled because they trail the likes of DreamWorks Animation and Pixar on the technical side. More importantly, some creative juice is missing. US-based animators have mined Chinese culture to produce compelling stories ranging from "Mulan" to "Kung Fu Panda." Local players have yet to reach the same heights.

"In China, most animated films are imported from the US; very few are Chinese original content. The most successful domestic films are probably ‘Pleasant Goat and Big Big Wolf' and ‘Boonie Bears' from few years ago, but the quality isn't as advanced as in the US," says Jixun Foo, managing partner at GGV Capital.

Wang is trying to bridge the gap with high-quality computer-animated films with a "Chinese cultural touch." His new venture - Light Chaser Animation Studios - secured $20 million in a Series B round led by GGV and Chengwei Capital, with participation from existing investors Hillhouse Capital and IDG Capital Partners.

Government restrictions on the number of foreign films that can be shown in China has crept up in recent years - it has increased from 20 three years ago to a soft cap of 34 - but there is still time for domestic animators to establish themselves at home and then abroad. "That's what Gary wants to do - providing content not only for kids, like "Pleasant Goat and Big Big Wolf," but also for broader audience base," Foo says.

Wang has spent the last 15 months assembling a team of talented animators. According to local media reports, new recruits include a former DreamWorks' lighting artist and three more art advisors who have previously worked at Pixar and other global firms.

The studio's first 3D feature-length animated film - "Little Door Spirit" - has a budget of $12 million and will be completed by July 2015. Light Chaser has already released a short film called "Little Yeyos" as a taster of what it can do.

Although Wang's Youku Tudou days are behind him, GGV and Chengwei both retain seats on the company's board. It is seen as a potential strategic investor in Light Chaser in the future. "Based on the circle of relationships we have built before, Youku Tudou could be a content distributor for Light Chaser because it has a wide distribution platform," Foo adds.

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• Topics
• Venture
• Early-stage
• Media
• Greater China
• TMT
• Media
• China
• Venture
• GGV Capital
• Chengwei Ventures Shanghai