Need help?

Newly Established TV Production Company Investment Opportunity in Cape Town, South Africa

Founder-led animation studio with 20+ years' experience creating original 2D series and films globally.
This Business is on a Premium Plan
Established 0-1 year(s)
Employees 2 - 5
Legal Entity Private Limited Company
Reported Sales Nil
Run Rate Sales USD 10.7 thousand
EBITDA Margin 30 %
Industries TV Production + 1 more
Locations  Cape Town
Local Time 3:03 AM Africa / Johannesburg
Listed By Business Owner / Director
Status Recently Active
Overall Rating
Partial Stake Sale
USD 195 thousand for 49.0% stake (Native Currency: ZAR 3,500,000)
Reason: 1. Complete the 2D animation series: * With 7 of 26 episodes (3 minutes each) already produced, ZAR... View More
Includes physical assets worth USD 395 thousand
Interested to connect with advisors
Name, Phone, Email
Available after connect
Business Name
Available after connect
User Verification
Documents
Business Overview
1. Business overview:
The company is a dynamic 2D animation production house based in Cape Town, South Africa, delivering a 26-episode 2D animated series (3 minutes per episode), with 7 episodes completed and ready for distribution. Founded by industry veterans, the studio blends local talent with global collaboration to create high-quality animation for domestic and international markets.
2. Number of clients:
Currently engaged with 4 clients, including a South African broadcaster, an international streaming platform, and two advertising agencies seeking animated content. The studio is actively pitching to additional regional and global partners to expand its client portfolio.
3. Revenue model:
Revenue is generated through:
- Licensing the 26-episode series to broadcasters and digital platforms.
Contracts for custom animation in advertising and short films.
Potential future income from IP licensing and merchandise tied to the series.
Initial projections estimate ZAR 720k - ZAR 1.44 million from licensing the completed 7 episodes, with significant growth potential upon full series completion.
4. Promoter experience:
The studio is led by founders with over two decades of combined experience:
- Promoter 1: A producer with 10 years in television, advertising, and short films, skilled in managing animation projects from concept to delivery.
- Promoter 2: A writer and director with nearly 20 years of experience, bringing creative vision and storytelling expertise to the studio's productions.
Together, they've built a robust foundation for the company's success.
5. Business relationships:
The studio collaborates with a global creative team, including Middle Eastern artists and South African professionals, writers, designers, animators, music composers, and voice actors fluent in native and international languages. Partnerships include a local post-production house, a Cape Town-based voice-over agency, and remote contributors worldwide, ensuring a diverse and scalable production pipeline.
6. Growth potential:
With a mission to meet South Africa's growing demand for domestic animation and compete globally, the studio aims to complete the remaining 19 episodes of its series and expand into additional projects. Investment will accelerate production and unlock distribution opportunities across Africa, Europe, and beyond.
Products & Services Overview
Our top services:
- 2D animation and 3D animation.
- Motion graphic.
We are currently producing a 2D animation series comprising 26 episodes, each with a duration of 3 minutes.
Assets Overview
Tangible assets of the company:
* Studio equipment:
- Workstations, sound recording gear, servers, and peripherals - ZAR 3.45 million.
- Furniture (desks, chairs, and screening room setup) - ZAR 200,000.
* Overseas studio assets (in our rented 340 m. sq. duplex studio facility in Tehran, Iran):
- Render farm animation rendering - ZAR 3 million.
- Voice studio equipment (soundproof booth, microphones) - ZAR 500,000.
- Workstations for 32 fixed employees - ZAR 1.5 million.
- Animation institute equipment (training tools) - ZAR 400,000.
* Physical Media: Master copies of the trailer and 7 episodes - ZAR 50,000.
* Total tangible assets: ZAR 9.1 million. These assets are being offered at a discounted valuation of ZAR 7.1 million.
- Note: The overseas facility's equipment, owned despite the rental duplex status, reflects prior operations halted by sanctions, which are now supporting our Cape Town venture.
* Intangible assets:
* Intellectual Property (IP):
- Trailer for a long animation movie - ZAR 2,000,000.
- 7 of 26 episodes of a 2D series (3 minutes each) - ZAR 3,500,000.
- Scripts for additional animation series - ZAR 1,000,000.
* Brand and goodwill:
- Founders' expertise (20 +years in animation) and studio reputation - ZAR 2,000,000.
* Operational Systems:
- Production workflows and animation institute curriculum - ZAR 500,000.
Total intangible assets: ZAR 9,000,000.
Total Assets of Cape Town Animation Studio.
* Combined Value: ZAR 18,100,000, aligning with the $1 million investment, reflecting a debt-free operation focused on high-potential animation content.
Related company: (Property development company)
* Tangible assets:
- Property development assets (e. g. , land, buildings, or developments in progress) - ZAR 10,000,000.
- Details: This company is a separate entity owned by the founders, specializes in property development and holds a robust portfolio valued at close to ZAR 10 million. These assets are unencumbered and available as surety to back investment in this animation studio business.
- Role: Provides financial security for investor, leveraging real estate value to support animation growth without diluting the animation company's ownership.
- The animation company assets reflect the $1 million investment in animation production (trailer, episodes, scripts) and infrastructure (equipment, overseas studio), with no debt.
- Crew aside: Adds ZAR 10M in property assets as surety, signaling financial stability and reducing investor risk. This could cover loans, guarantees, or equity deals without leveraging Cape Town's IP directly.
Sanctions Context: The overseas studio's assets (render farm, etc. ) are included as owned, despite halted operations, explaining the move to Cape Town.
Facilities Overview
- 140 m² double-storey office and workshop in Cape Town (HQ).
- ZAR 45,000/month lease.
- 3-year contract.
- We also have a rented studio in Tehran, Iran, supporting our production activities.
Capitalization Overview
The company is entirely self-funded through personal contributions from its founders.
Established with their combined capital, the studio has relied on this personal investment to launch operations and produce its flagship 2D animation series (26 episodes, 3 minutes each, with 7 episodes completed). The founders' decision to personally fund the business reflects their confidence in its potential to meet South Africa's growing demand for domestic animation and compete globally. Early revenue from client contracts has supplemented these funds, allowing the studio to maintain financial independence without external financing.
Debts/loans outstanding:
- No debts or loans: The studio has no outstanding debts, loans, or financial obligations to third parties. All funding to date has come directly from the personal savings and resources of the founders, ensuring a debt-free operation. This approach minimizes financial risk and preserves full ownership control as the business scales.
Additional investment: The founders collectively invested an estimated ZAR 800,000 from their personal savings to cover startup costs, including equipment (workstations and software).
- Revenue reinvestment: Early contracts with 4 clients (e. g. , a South African broadcaster and advertising agencies) have generated approximately ZAR 150,000 to date, which has been reinvested into ongoing production and operational expenses.
- Future funding plans: With no reliance on debt, the studio aims to secure equity investment or creative grants to complete the remaining 19 episodes, preserving its self-funded foundation while accelerating growth.
- The company has 2 shareholders.
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct. Note that SMERGERS is not liable for any loss, damage, costs, claims and expenses whatsoever arising from transacting with any other user from the website. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. Please read best practices on SMERGERS.
Contact Business
7 Investors viewed this Business this week. Register below to connect now!
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
You might also be interested in these businesses
    Frequently
    Asked
    Questions
    • Why can’t I see the business’ name or contact number? How do I contact the business?
    • What level of due diligence does SMERGERS conduct on the businesses/member?
    • How active are the business profiles listed on SMERGERS?
    • How does SMERGERS rate business profiles?
    • Do I need to pay to connect with a business?
    • Show more