Bluesky closes $15 million Series A funding as user base surpasses 13 million, plans to roll out subscriptions

Decentralized social media startup Bluesky has raised $15 million in a Series A round led by Blockchain Capital, with participation from Alumni Ventures, True Ventures, SevenX, Amir Shevat of Darkmode, Kubernetes co-creator Joe Beda, and others. This funding follows Bluesky’s recent milestone of surpassing 13 million users.

This round comes after the company’s $8 million seed raise last year and amid a period of rapid growth, partly fueled by discontented users from X reacting to changes like adjustments to the block feature and the use of public posts for AI training.

Armed with fresh capital, Bluesky is positioning itself to compete in the crowded microblogging space, which includes platforms like Mastodon and the soon-to-launch Threads.

“With this fundraise, we will continue supporting and growing Bluesky’s community, investing in Trust and Safety, and supporting the ATmosphere developer ecosystem,” Bluesky said in a blog post. “In addition, we will begin developing a subscription model for features like higher quality video uploads or profile customizations like colors and avatar frames.”

Once touted as the “Twitter killer,” Bluesky was founded in 2019 as an internal project under Jack Dorsey. It was built as a decentralized social network protocol. However, Dorsey stepped down from the board in May, shortly after publicly backing Elon Musk’s X, which he referred to as “freedom technology.” Despite Dorsey’s departure, Bluesky remains focused on its mission of decentralization.

Powered by the AT Protocol, Bluesky gives users more control by allowing them to set up their own social servers and apps. The company remains committed to decentralization without integrating blockchain or cryptocurrency, and it has reassured users that it will not hyperfinancialize the platform with tokens, NFTs, or similar Web3 elements.

With this Series A, Bluesky plans to continue growing its user base and enhancing Trust and Safety features. Kinjal Shah of Blockchain Capital will join Bluesky’s board, bringing experience to help the company scale its decentralized infrastructure. Although Blockchain Capital is known for its involvement in the crypto space, Bluesky is steering clear of that direction.

As part of its roadmap, Bluesky plans to introduce subscriptions for premium features, including higher-quality video uploads and profile customization. Unlike X’s paid tiers, Bluesky won’t use subscriptions to boost visibility or offer algorithmic advantages, a practice its developers have criticized as detrimental to the user experience.

Bluesky is also looking to support its growing creator community—which includes artists, writers, and developers—by developing voluntary monetization options. This will include payment services to allow users to support their favorite creators and projects.

The AT Protocol has already facilitated the development of apps beyond Bluesky’s core social platform, such as Smoke Signal for event management, Frontpage for forums, and Bluecast, an audio app that includes karaoke features. Bluesky believes monetization strategies like subscriptions and creator payments will help these independent apps flourish as well.

In September, we reported on Bluesky’s rapid growth, particularly in Brazil, where the platform gained two million new users after a judge banned X in the country.

Bluesky aims to develop a decentralized social network designed to provide users with greater choice, control, and transparency. As the market for decentralized platforms grows more competitive, the company will need to distinguish itself to secure its place in the industry.