I really like the idea. I have a very similar idea on my to-do stack, but with one major difference: the characters would be controlled with neural networks. Then the game becomes about not just drawing your character, but also designing sparring arenas that they can train on, etc. It's more of a you-draw-it real-time pokemon'ish game.
> it is not cheap, so we are looking to raise 20,000
Why not just submit to YC then? You'll get $20K and much better publicity and VC connections.