Ukraine-born entertainment tech company Holywater has raised $22 million in a new financing round, the largest confirmed investment in the microdrama sector outside Asia, as it expands its presence in the US
Founded in Ukraine in 2020 by Bogdan Nesvit and Anatolii Kasianov, Holywater operates a portfolio of mobile-first content platforms, including My Drama for vertical series, My Passion for digital books, and My Muse, a streaming service supported by artificial intelligence (AI).
JOIN US ON TELEGRAM
Follow our coverage of the war on the @Kyivpost_official.
The round was led by Horizon Capital, with strategic participation from US-based investors Endeavor Catalyst and Wheelhouse, the company said in its press release.
The company said the new funding would support the development of a mobile-first platform for vertical video and the expansion of its AI-driven content ecosystem, including comics and anime.
The funding follows an earlier equity investment from Fox Entertainment in October, which marked the US media group’s entry into the microdrama segment through a partnership with the Ukrainian startup.
Under the deal, Fox Entertainment Studios would produce more than 200 original vertical series for Holywater’s apps over the next two years, in collaboration with studios and content creators. The first titles are currently in production in the US and are expected to debut across Holywater’s platforms.
“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,” Nesvit and Kasianov, co-founders and CEOs of Holywater, were quoted as saying.
Other Topics of Interest
Estonia’s Iute Group Signs Deal to Buy Ukraine’s Bridge Bank Built on RWS Bank Assets
Estonia’s Iute Group has signed an agreement to acquire 100% of UTE Bank, a bridge bank created using assets of the failed RVS Bank, heralding a rare foreign banking entry into Ukraine during wartime.
What are Holywater and microdramas?
Holywater is a Ukrainian entertainment company that focuses on microdramas – ultra-short, vertically shot series for smartphones featuring brief, fast-paced episodes – though its portfolio also includes other forms of content.
Microdramas have attracted growing investor interest, as production costs are far lower than traditional TV. The format has already become a major business in China.
In an April 2025 interview, Nesvit said he aimed to build on top of that format with the help of AI.
“When I saw a major Chinese player launch a domestically popular vertical video series in Western markets, and scaled it rapidly, I knew we could do better,” he said. “By integrating AI into the creative process our viewers don’t just watch our characters; they can actually interact with them on a sustained basis.”
Holywater’s apps, including My Drama and My Muse, have reached over 85 million users, according to the company, with My Drama winning a 2025 Webby Award and doubling revenue last year.
Axios reported this week that microdramas generated an estimated $3 billion in revenue globally in 2025 outside China, nearly triple the previous year, with the US accounting for about $1.3 billion.
Industry data cited by TheWrap shows that vertical series typically cost between $150,000 and $300,000 per season and can be produced in eight to 10 days, allowing studios to iterate quickly and scale output. Holywater has previously said a season of its original content can cost up to $100,000, with generative AI and in-house post-production reducing costs by around 40%.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.kyivpost.com ’
