LP starts to lay out micro-dramas.

In 2025, the venture capital and investment industry is targeting a new battlefield - "short web dramas".

From private securities funds quietly laying out stocks related to short drama concepts in the secondary market to market - oriented VCs scanning the upstream and downstream of the industrial chain, the consumer and entertainment track, which has been dormant for many years, has finally seen a long - awaited warming this year.

Notably, in this undercurrent, government - guided funds have quietly become the "vanguard" in the short drama market. With clear industrial missions and resource - integration capabilities, they have taken the lead in sounding the rallying call.

Venture Capital Funds Enter the Short Drama Arena

Undoubtedly, short web dramas have become one of the most popular cultural phenomena in recent years. Their characteristics of being "short, straightforward, and fast", with strong monetization and high user stickiness, have precisely met users' entertainment needs in the fragmented era, leading to an explosive growth in the market size.

Statistics show that from 2021 to 2023, the market size of short web dramas in China was 368 million yuan, 10.17 billion yuan, and 37.39 billion yuan respectively. In 2024, this figure exceeded 50 billion yuan.

Industry estimates suggest that the market size is expected to reach 68 billion yuan in 2025 and may exceed 100 billion yuan by 2027.

This attractive market has not only attracted platforms, producers, and advertisers but has also caught the wide - spread attention of the financial industry.

Previously, media reported that some private securities funds had either invested in stocks related to short drama concepts in the secondary market or directly participated in the production of short web dramas.

In 2025, the primary market has also set its sights on this blue ocean. Among the wave of venture capital institutions entering the market, government - guided funds have taken the lead in sounding the rallying call to enter the short drama market.

In August 2025, the Yingtan Modern Industry Guidance Fund issued an announcement to publicly solicit candidate institutions for sub - fund management: Yingtan Yujiang District Industrial Investment Group Co., Ltd. (hereinafter referred to as "Yujiang Industrial Investment") plans to participate in the establishment of the Yingtan Modern Industry Guidance Equity Fund Film and Television Sub - fund (hereinafter referred to as the "sub - fund"). To attract excellent fund managers nationwide to actively participate in the establishment of the sub - fund, it is now publicly soliciting sub - fund managers from the society.

The fund clearly states: To achieve the goal of the government's industrial guidance fund leveraging social capital to invest in the short web drama industry, with short web drama investment as the core, it aims to attract and drive upstream and downstream industries such as film and television technology, AIGC, short web drama production and distribution, build an ecological circle for the short web drama industry in Yujiang, lay a solid foundation for the long - term and healthy development of the industry, create new business models, build a unique brand for Yingtan's short web dramas, enrich Yingtan's industrial structure, and inject "Yingtan power" into the construction of a strong cultural province in Jiangxi.

The announcement indicates that the target scale of the fund is 200 million yuan, and the initial subscribed capital contribution is 30 million yuan.

The announcement clearly requires the sub - fund manager's fundraising ability. It is specified that the sub - fund manager should, in principle, raise at least 20% (including the fund manager's own funds) of the sub - fund's capital. Fundraising ability is a core indicator for recommending sub - fund plans. Sub - fund plans with a high proportion of social capital investment and social capital investors with industrial backgrounds and resources related to the sub - fund's investment will be given priority for recommendation.

In fact, this fund is not a castle in the air. Behind it is a solid prototype of the local industrial foundation.

In recent years, Yujiang District has activated new impetus for the cultural and tourism industry with innovative thinking and took the lead in building the first professional short web drama film and television base in the province - Shifang Guangying (Yujiang) Film and Television Base. It is reported that in 2024, a total of 271 short web dramas were filmed at this base, including 211 domestic high - quality dramas and 60 high - quality dramas for overseas markets, with a cumulative box office of over 1 billion yuan, becoming a new engine for the high - quality development of the regional cultural industry.

In April 2025, the Publicity Department of the Jiangxi Provincial Party Committee and the Provincial Radio and Television Bureau jointly issued "Several Measures for Promoting the High - quality Development of the Short Web Drama Industry in Jiangxi" ("Ten Practical Policies"), providing cash rewards and annual investment subsidies for enterprises that shoot on location in Jiangxi or are registered, shoot, and launch short web dramas in Jiangxi.

In addition, in 2024, Jiangxi Province issued the "Implementation Plan for the 'Short Dramas Tour Jiangxi · New Cultural and Tourism Routes in Jiangxi' Creation Plan", which proposed that by 2027, a number of physical shooting locations should be promoted to gain popularity following the popularity of short web dramas, achieving the goal of "one drama making a city famous".

Some industry insiders pointed out that the establishment of the Yujiang Guidance Fund may open up a key capital channel for this vision of integrating "cultural tourism + short dramas".

A New Capital Game

In the past few years, affected by various factors, the entertainment industry has faced many challenges. The valuations of film and television companies have shrunk, IP incubation has cooled down, and the vacancy rate of traditional film and television bases has increased. The industry was once in a state of "structural dormancy". However, the explosive growth of short web dramas has brought a glimmer of hope to the industry. This growth has also begun to attract the attention of the venture capital industry.

Actually, it's not just Jiangxi. Observations show that since this year, many places have introduced incentive policies for short web dramas, providing clear guidance and fresh impetus to the short web drama market.

Recently, Shenzhen issued "Several Measures for Promoting the High - quality Development of the Digital Creative Industry", listing short web dramas as a key development industry. It clearly states the promotion of high - quality short web dramas. It aims to make short web dramas a new channel for strengthening mainstream values, mainstream public opinion, and mainstream culture, and a new carrier for reflecting the city's image, deepening international communication, and promoting industry integration. It encourages short web dramas to go global and expand the international market. Based on a comprehensive evaluation of mainstream and market, professional and public opinions, and investment scale, short web drama works will be subsidized up to 3 million yuan, with a subsidy rate of no more than 30% of the investment. It also supports the clustered development of the short web drama industry, builds industrial public service platforms, improves copyright trading and brokerage services, enhances multilingual dubbing capabilities, and accelerates the integration and application of new technologies. Relevant projects will be subsidized up to 2 million yuan, with a subsidy rate of no more than 30% of the investment.

The "Measures for Supporting the Support and Reward of High - quality Cultural and Artistic Works" jointly issued by five departments, including the Shaanxi Provincial Department of Finance, the Publicity Department of the Shaanxi Provincial Party Committee, the Shaanxi Provincial Department of Culture and Tourism, the Shaanxi Provincial Radio and Television Bureau, and the Shaanxi Provincial Federation of Literary and Art Circles, has also been implemented recently. It clearly states that short web dramas winning the National "Five - One Project" Award will be rewarded with 1 million yuan; those aired during prime time on CCTV's comprehensive channel will be rewarded 100,000 yuan per episode; and those with over 20 million views on overseas platforms will be rewarded up to 500,000 yuan.

Regions such as Shanghai, Jiangsu, and Zhejiang have also been active. On July 15, 2025, "Several Measures of Shanghai for Supporting the Creation of High - quality Internet Content" (hereinafter referred to as "Several Measures") was released, clearly stating nine support policies covering aspects such as financial incentives, talent policies, scenario construction, and support for going global.

It is understood that many districts in Shanghai have taken the lead in responding and introduced a number of measures.

According to media reports, to support the creation of high - quality Internet content, Yangpu will soon release the "Supporting Policies for Building a High - quality Internet Content Creation Cluster in Yangpu District", launching 18 measures from six dimensions of "exemption, reward, service, investment, subsidy, and management" to build a policy cube "YOUNG Cube" and assist in the creation of high - quality content. At the same time, it will provide "tailor - made" services to ensure that the policy goals are achievable, the rules are visible, the logic is understandable, the paths are accessible, and the policy is warm - hearted.

In terms of "investment", it is clearly stated that: first, an investment fund for Internet content creation will be established to support the development of industries such as short web dramas, anime, online literature, and live - streaming economy; second, a high - quality content creation fund will be jointly established with the Shanghai University Student Science and Technology Entrepreneurship Foundation to support the growth of newly established enterprises in the seed stage; third, a "Financial Partner Program" will be launched in cooperation with local banks and guarantee institutions to develop financial products with characteristics of the Internet content industry.

According to FOFWEEKLY, the 2025 Nantong Short Web Drama Week will be held in Nantong this week, and a major short drama plan may be announced on - site.

In addition, according to informed sources, Nantong is planning to establish a mother fund soon, and its investment scope may be related to cultural and entertainment consumption.

Currently, many places across the country are actively deploying in the short web drama industry, injecting new vitality into the consumer and entertainment track that has been dormant for many years. This has allowed investors to see new possibilities for technology - empowered content and may breed more in - depth opportunities in related industries such as AI and digitalization.

Conclusion

In just two years, short web dramas have jumped from the wild west to the hall of venture capital.

When government - guided funds from various places enter the market with blueprints for industrial planning and when technological engines drive the industrialization of content production, this industry, once regarded as a "fast - moving consumer product of traffic", may be given a new mission - it is no longer just "electronic snacks" on mobile screens but has become an interface for new cultural consumption, a scenario for new technological applications, and a carrier for new urban images.

As capital pours in, the short web drama industry is undergoing a crucial transformation.

This article is from the WeChat official account "FOFWEEKLY". Author: FOFWEEKLY. Republished by 36Kr with permission.