Bluesky, a decentralized social media app, has announced a $15 million Series A funding round as it works on introducing a new subscription service. This funding follows an $8 million seed round last year and arrives as Bluesky’s user base rapidly expands, gaining 3 million users in the last month alone.
The platform now has around 13 million users, with much of this growth driven by former X (formerly Twitter) users who have joined in response to changes like X’s modified block feature and its allowance for third parties to train AI on public posts.
Initially launched as a Twitter project envisioned by former Twitter CEO Jack Dorsey, Bluesky has since spun off as an independent company and is no longer connected to Dorsey, who left its board earlier this year. Built on the AT Protocol, Bluesky follows a decentralized model similar to Mastodon, enabling individuals to create their own servers and offering developers visibility into its operations.
Bluesky’s Planned Paid Tier Features
In addition to the new funding, Bluesky is working on a premium subscription model to introduce features like higher-quality video uploads and options for profile customization, including avatar frames and color themes.
Unlike X’s premium offerings, Bluesky’s subscription plan will not prioritize premium users or include verification badges, a point emphasized by Bluesky’s developer, Paul Frazee, who criticized “pay-to-win” features like visibility boosts or blue checks as counterproductive to the platform’s goals. “The way Twitter did subscriptions was basically a blueprint for how Bluesky shouldn’t do them,” Frazee posted.
Series A Round and Investor Partners
This latest funding round, led by crypto-focused firm Blockchain Capital, also included participation from Alumni Ventures, True Ventures, SevenX, Amir Shevat of Darkmode, and Joe Beda, co-creator of Kubernetes.
While Blockchain Capital’s involvement and Bluesky CEO Jay Graber’s previous role at crypto company Zcash might spark concerns about a shift toward cryptocurrency or blockchain integration, Bluesky has addressed these concerns directly.
In its announcement, the company reiterated that its platform will not incorporate cryptocurrency, blockchain, or web3 elements such as NFTs or token trading, stating, “We will not hyperfinancialize the social experience (through tokens, crypto trading, NFTs, etc.).” Bluesky further clarified that Blockchain Capital shares its commitment to technology that prioritizes user experience over commercial interests.
Kinjal Shah, a general partner at Blockchain Capital, will join Bluesky’s board, supporting Bluesky’s expansion and development vision. Bluesky stated that the new funding would go toward community growth, improvements in Trust and Safety, and supporting its ATmosphere developer ecosystem, which allows external developers to contribute to the platform.
