In a definitive move that signals the arrival of “mobile-first” cinema in the West, HOLYWATER has announced a landmark $22 million financing round. This capital injection represents the largest confirmed investment in the microdrama sector outside of Asia, positioning the Kyiv and Lisbon-based tech pioneer as the undisputed leader in an industry currently valued at $11 billion globally.
The funding round was led by Horizon Capital, with significant strategic participation from premier U.S. investors including Endeavor Catalyst and Wheelhouse. This financial milestone follows a previous investment from FOX Entertainment, creating a powerhouse alliance intended to transform microdramas—short-form, high-production vertical series—into mainstream entertainment for the American and European markets.
Redefining the “Netflix” Experience for the TikTok Generation
HOLYWATER is not merely producing content; it is architecting an AI-driven ecosystem. The company’s flagship app, My Drama, recently secured the “Best Streaming Service” People’s Voice award at the 2025 Webby Awards, having doubled its revenue over the past year. By leveraging proprietary technology, HOLYWATER plans to expand its portfolio beyond vertical video into AI-enabled comics, anime, and high-velocity IP incubation.
The efficiency of this model is disrupting traditional Hollywood economics. While standard television can take years to develop, HOLYWATER utilizes an 8-to-10 day production cycle, allowing for rapid iteration and a constant stream of premium content for its 85 million users.
Strategic Leadership and Global Ambition
“This is the largest investment in the microdrama space to date outside of Asia, and it sends a clear message to the industry: short-form, studio-quality storytelling is here to stay,” stated Bogdan Nesvit and Anatolii Kasianov, Co-Founders and Co-CEOs of HOLYWATER. “Vertical series are no longer an experiment—they are proving to be a scalable, long-term format and AI-powered IP incubation engine for the next generation of global hits.”
Vasile Tofan, Senior Partner at Horizon Capital, emphasized the company’s capital efficiency and data-driven prowess. “Their innovative approach to content production… has enabled the company to scale rapidly while maintaining strong engagement and retention. We look forward to supporting the team as they build a durable, category-defining business.”
Furthering the Hollywood connection, Brent Montgomery, CEO of Wheelhouse, noted that HOLYWATER is a “great fit” for their strategy of exploring how AI can unlock new forms of format development across their ecosystem of athletes and creators.
Editorial Opinion: The Strategic Sophistication of HOLYWATER
The ascent of HOLYWATER marks a pivotal shift in the “attention economy.” For years, the Western entertainment industry viewed short-form vertical video as the domain of amateur social media. However, HOLYWATER has successfully bridged the gap between the addictive nature of social feeds and the narrative depth of traditional prestige TV. By securing the backing of heavyweights like Horizon Capital and FOX Entertainment, they have effectively validated microdramas as a legitimate, high-revenue asset class.
What distinguishes HOLYWATER is its “AI-first” DNA. In an era where production costs are skyrocketing, their ability to use generative AI to streamline comics, anime, and script iteration provides a massive competitive moat. They are moving toward a model where intellectual property is tested and scaled at machine speed. As consumer spending on short-drama apps reached $700 million in just the first quarter of 2025, it is clear that HOLYWATER is not just following a trend—they are the primary architects of a new global standard in digital consumption.
The company’s resilience is also a point of professional pride for the Eastern European tech corridor. Scaling a global entertainment leader to such heights while maintaining operations in Kyiv demonstrates an extraordinary level of operational discipline. As they integrate with the Wheelhouse and Endeavor Catalyst networks, HOLYWATER is perfectly positioned to become the “Operating System” for the next century of storytelling.
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