Bluesky Launches Major Funding Round Amid Rising Interest
Bluesky, the decentralized social media platform launched by former Twitter CEO Jack Dorsey, is making a fresh push to secure its future with a new funding round. Valued at $700 million in this latest drive, the platform seeks to expand its potential as an alternative to mainstream social apps like X (formerly Twitter) and Threads.
Bluesky’s appeal lies in its promise of decentralization, allowing users more control over their online experience by letting them choose servers and algorithms. While these features are still under development, recent shifts in the social media landscape – like Meta easing content moderation and X adopting a “free speech approach” – have reignited interest in platforms that prioritize user autonomy. This has made Bluesky the obvious target of users who are abandoning said platforms due to recent changes.
This marks Bluesky’s third funding round, adding to the $15 million Series A funding raised in October 2024 and $8 million in seed funding from July 2023. Initially supported by Twitter and Dorsey, Bluesky has grown into a separate entity with over 25 million users. However, growth has slowed recently, highlighting the challenges of competing with well-funded platforms like Threads, with its seamless integration into Instagram, and X, which boasts over 570 million active users.
The success of decentralized platforms like Bluesky hinges on balancing user control with accessibility. While many users value the promise of freedom from big tech, the complexity of decentralized platforms can deter mainstream adoption – a hurdle evident in Mastodon’s struggles, resulting in many users never touching Mastodon due to how intimidating the concept sounded.
Bluesky’s financial model also remains uncertain. The platform has floated subscription-based features, but ad revenue may eventually become necessary for sustainability. Despite these challenges, Bluesky’s mission to offer a user-driven alternative could resonate with those seeking less corporate influence in social media, especially if it can streamline its user experience and expand its reach.
