Ukrainian technology company HOLYWATER has closed a $22 million investment round — the largest confirmed deal in the micro-drama niche outside Asia. According to Scroll.media, the round cements HOLYWATER’s position as a leader among Western players in the $11 billion global market.

What’s Known

• The round was led by Horizon Capital, with strategic participation from US investors including Endeavor Catalyst and Wheelhouse.
• HOLYWATER will use the new funding to develop a mobile-first streaming platform for vertical series, built around a Netflix-style model. The company also plans to scale its proprietary content ecosystem, particularly in AI-powered comics and anime. A major focus will be on strengthening the company’s internal infrastructure for creating, testing, and distributing IP, as well as expanding into new genres and content categories.

«We are delighted to be partnering with Bohdan, Anatolii, and the entire HOLYWATER team. Their innovative approach to content production, combined with a systematic, data-driven user-engagement model, has enabled the company to scale rapidly while maintaining high audience engagement and retention. In a short time, HOLYWATER has established a leading position in the new short-form content segment. We are happy to continue supporting the team as it builds a strong, niche-defining business,» commented Vasyl Tofan, Senior Partner at Horizon Capital.

• The $22 million round follows Fox Entertainment’s strategic investment in October 2025. According to Scroll.media, HOLYWATER’s post-money valuation could be in the $200–250 million range.
• As the company informs, Fox is already working on the production of more than 200 original micro-dramas and vertical series for HOLYWATER’s platforms, with premieres scheduled over the next two years.

• In an April 2025 interview with Scroll.media, founders Bohdan Nesvit and Anatolii Kasianov said the company’s 2024 ARR reached $100 million. According to Scroll.media sources, 2025 revenue could be around $150 million.

About HOLYWATER

• HOLYWATER HOLYWATER is a technology company building entertainment products at the intersection of human creativity and artificial intelligence. Its ecosystem now reaches more than 85 million users.
• The company’s core products include:
  • My Drama — a streaming platform for vertical series
  • My Passion — a digital book library
  • My Muse — a platform for vertical series created with the help of generative AI
• HOLYWATER was named to the Sifted 250, a ranking of Europe’s fastest-growing startups. Its My Drama app won the People’s Voice Award for Best Streaming Service at the 2025 Webby Awards, while My Muse is one of the leaders in the AI-driven streaming segment.

Why it matters

According to Axios, micro-dramas generated approximately $3 billion in global revenue (excluding China) in 2025, nearly three times more than the year before. The US is the largest market at $1.3 billion, and that figure could reach $3.8 billion annually by the end of the decade.

User spending on short-drama apps quadrupled in the past year, hitting $700 million in Q1 2025 alone. Production costs, meanwhile, remain relatively low compared to Hollywood. TheWrap reports that vertical-series budgets typically range from $150,000 to $300,000, with production cycles of just 8–10 days, enabling rapid testing and high-volume output.

With its Fox partnership, HOLYWATER puts Ukrainian founders and talent at the center of this fast-growing global market. The investor lineup also stands out:

• Horizon Capital is a leading private-equity firm in Central and Eastern Europe, managing over $1.6 billion from investors with a combined capital base of more than $700 billion.
• Endeavor Catalyst, Endeavor’s global investment arm founded in 2012, manages $540 million across four funds, with 35 exits and 66 unicorn-valued companies in its portfolio. It recently made its first investment in a Ukrainian company, Headway Inc.
• Wheelhouse, founded in 2018 by Brent Montgomery, is an entertainment, talent, and investment platform focused on IP-driven content. Its studios, including Wheelhouse Studios, Spoke Studios, Campfire Studios, Butternut, and Twist, have produced hit shows for Netflix, Hulu, A+E, Max, and Food Network, operating from creative hubs in New York, Los Angeles, Connecticut, and London.