Holywater, the European startup focused on vertical video storytelling, has closed a $22 million financing round, the largest confirmed investment in the burgeoning microdrama sector outside Asia. Led by Horizon Capital, with participation from Endeavor Catalyst and Wheelhouse, the funding positions Holywater as a Western leader in what is estimated to be an $11 billion global market.
The $22 million round will support global scaling, expansion into new genres such as AI-enabled comics and anime, and further development of infrastructure. Holywater’s focus is on increasing content output and audience reach in the microdrama space.
Founded in 2020 by Bogdan Nesvit and Anatolii Kasianov, Holywater operates a vertically integrated content ecosystem that spans mobile-first streaming, books, and AI-assisted storytelling. Its flagship platform, MyDrama, offers vertical video series optimized for short-form consumption, while MyPassion tests literary IP for adaptation into microdramas, and MyMuse provides AI-enhanced streaming experiences. This setup allows stories to move from page to screen in months rather than years.
“This is the largest investment in the microdrama space outside Asia and confirms that vertical storytelling is a viable and growing format,” said Nesvit and Kasianov.
Holywater’s growth reflects broader market trends. Axios reports that global microdrama revenues, excluding China, reached $3 billion in 2025 – nearly triple the previous year – with the US leading at $1.3 billion. Analysts project US revenues could reach $3.8 billion annually by 2030. Short-form drama apps alone generated $700 million in Q1 2025, a fourfold increase over the previous year.
Holywater’s production model is distinct from traditional Hollywood approaches. Vertical series budgets typically range from $150K-$300K with 8-10 day production cycles, enabling rapid iteration and high output. Episodes run roughly one minute each but collectively form narratives comparable in length to 70-80 minute features. The content is designed for mobile-first viewing similar to TikTok and YouTube Shorts.
Fox Entertainment, which previously partnered Holywater, is producing over 200 original vertical series and microdramas for the company’s platforms over the next two years. The partnership provides access to Hollywood IP, talent, and production infrastructure, signaling increasing industry recognition of vertical storytelling.
MyDrama now reaches 55m users, and revenue doubled in 2025. AI tools are integrated across workflows – from localisation and dubbing to pilot testing – allowing data-informed creative decisions at scale. “The next generation of entertainment is mobile-first, and Holywater has created a scalable vertical platform with clear monetisation potential,” said Brent Montgomery, CEO of Wheelhouse.
Picture: Bogdan Nesvit (right) and Anatolii Kasianov, Holywater’s co-founders and co-CEOs
