HOLYWATER, a leading entertainment technology company, has successfully closed a $22 million financing round, marking a significant milestone for the industry. The round was led by Horizon Capital with strategic participation from U.S. investors Endeavor Catalyst and Wheelhouse. This transaction represents the largest single investment in the microdrama sector to date outside of Asia, signaling strong confidence in the future of vertical storytelling.
Fueling a New Era of Mobile Entertainment
This capital infusion is earmarked to build a mobile-first “Netflix” for vertical video streaming and accelerate the company's AI-driven content ecosystem. HOLYWATER plans to expand into AI-enabled comics and anime, significantly strengthening its intellectual property incubation and distribution engine. The funding will also support expansion into new genres and content categories to broaden its audience reach.
The $22 million round follows a previous investment from Fox Entertainment in October 2025, which solidified a major content partnership. Fox is actively producing a slate of more than 200 original microdramas and vertical series exclusively for HOLYWATER's applications. This collaboration leverages Hollywood studios and talent to create a centralized hub for premium mobile-first content.
Investor Confidence in a Proven Model
Vasile Tofan of Horizon Capital praised HOLYWATER's innovative approach to content production combined with a disciplined, data-driven model for user acquisition. He noted the company has scaled rapidly while maintaining strong engagement and capital efficiency. This has allowed HOLYWATER to build a leading position in the emerging short-form content category.
Brent Montgomery, CEO of Wheelhouse, highlighted the platform's clear and scalable monetization engine, calling it a standout in vertical storytelling. He emphasized that HOLYWATER aligns with Wheelhouse's strategy of using AI to unlock new forms of format development. The participation of Endeavor Catalyst further validates the company's global potential and innovative business model.
Capitalizing on Explosive Market Growth
The investment arrives as the microdrama market experiences explosive demand, generating an estimated $3 billion globally in 2025, excluding China. The United States has emerged as the largest market with $1.3 billion in revenue, a figure projected to climb significantly by the decade's end. This trend signals a permanent shift in consumer habits toward mobile-first entertainment standards.
This new format disrupts traditional production models with its efficiency and speed, enabling rapid iteration and a high volume of content. Unlike Hollywood's lengthy timelines, vertical series are typically produced in 8-10 days with budgets around $150,000 to $300,000. This agility allows creators to respond quickly to audience preferences and market trends.
A Leader in Entertainment Technology
HOLYWATER has already established itself as a dominant force, earning a spot on Sifted’s 2025 list of Europe’s fastest-growing startups. Its flagship app, My Drama, was named “Best Streaming Service” at the 2025 Webby Awards and nearly doubled its revenue last year. The company's diverse content platforms, including My Passion and My Muse, now reach over 85 million users worldwide.
This landmark $22 million investment solidifies HOLYWATER's position at the forefront of the mobile entertainment revolution. By combining AI-driven innovation with strategic partnerships and a keen understanding of market dynamics, the company is redefining how stories are created and consumed. With substantial new capital, HOLYWATER is poised to accelerate its global expansion and shape the future of vertical storytelling.