Capital flows to Chinese AI video while Western microdrama rounds stay small
At least fifteen rounds closed between January and July 2026 across microdrama and adjacent AI video, led by Kling AI, Shengshu, PixVerse, Zhixiang and Fish Audio. Western vertical-drama rounds were far smaller or undisclosed.
What this basis means: Third-party research vendor estimate. The vendor is named wherever the source identifies it.
Chinese-language reporting records at least fifteen funding rounds across microdrama and adjacent AI video between January and July 2026.
Named examples: Kling AI at about $3.0bn on 2 July, Shengshu at $500m on 6 July, PixVerse at $439m on 13 July, Zhixiang at ¥1.5bn on 23 July and Fish Audio at $52m on 28 July. ITjuzi puts July's top four rounds alone above ¥26.2bn.
Western vertical-drama operators raised in the same period, on a much smaller scale. GammaTime closed a Series A on 2 June with Versant Media taking a minority stake, amount undisclosed; Idilio closed a seed round in June; and StoReel disclosed $34m combining seed money and user-acquisition financing on 23 June. Capital is moving heavily into adjacent AI video rather than into Western microdrama operators.
Companies Kling AI, Shengshu, PixVerse, Zhixiang, Fish Audio
Sources
- July 2026 funding totals ITjuzi
- Kuaishou filing, 2 July 2026 Hong Kong Exchanges and Clearing
Correction
: The report said none of the rounds closed in the period was in a Western vertical-drama app. GammaTime, Idilio and StoReel all raised money in June 2026, on a much smaller scale.