China's Animation Industry Faces Financing Difficulties

The current investment community's attitude to domestic animation companies is relatively cautious. Many small and medium animation enterprises generally face difficulties in financing. However, the animation companies must invest certain re-funding at the early period of the development to support operations.

Analysts said that financing of the domestic animation industry is indeed more difficult. Many institutional investors play a private equity role rather than as f venture capital like the foreign countries. They are lack of long-term vision.

Shanghai Municipal Committee of game developers said: "I think the current animation business financing is more difficult, because many enterprises are faced with piracy, poor quality and the heavy pressure from overseas competition."

The analysts said that relative to other industries, the attitude of the investment community at present to the domestic animation industry is more cautious. Many small and medium animation enterprises are faced with financing difficulties. This is mainly because they face the challenges of creativity and intellectual property protection. The company worked hard to develop a good product, but may soon be copied by others, which makes investors do not dare to invest.

From the industrial chain, the traditional animation industry is lack of creativity, personnel, l experience in commercial operations and many other problems. In the immature VC industry environment it is difficult to obtain the favor. Experts believe that if the domestic animation companies want to be successful, they must develop the product. Quality is still the soul of the animation industry.

The company spent four years developing the "Zombies" game. And the development time of many products on the market is six months or a year. Compared with a number of successful international animation companies, the key of the Chinese animation developers is to focus on products and ideas. We must strive to invent the best product. It is worthwhile even we spend more time on game development.

Analysts think that domestic animation companies should try to increase its strength, and provide technical reserves and personnel training. It also requires patience, long-term financial support. Animation game is moving from small congregation to leisure and consumption times. It will become a development trend. As long as there is patient  work,  it certainly have the opportunity to train outstanding Chinese animation enterprises.

It is lack of a whole industrial chain market environment. Many domestic works are also very good in terms of production standards, scalability and depth of creativity. Without a good promotion and operation, its value is not fully apparent.