Decentralized social media platform Bluesky has announced a $100 million Series B funding round just days after a major leadership change at the company. The announcement marks a new chapter for the fast-growing X rival as it looks to expand its platform and open social web technology.
Bain Capital Crypto Leads the Funding Round
The Series B round was led by Bain Capital Crypto and included participation from existing and new investors such as Alumni Ventures, True Ventures, Anthos Capital, Bloomberg Beta, and the Knight Foundation. Although the funding round closed in April 2025, Bluesky disclosed it publicly only now.
The company has not revealed its latest valuation following the investment.
CEO Transition Signals a New Phase
The funding announcement comes shortly after Bluesky founder and CEO Jay Graber stepped down from the CEO role and moved into the position of Chief Innovation Officer. Her new role will focus on the long-term development of Bluesky’s technology and the underlying AT Protocol.
Former Automattic CEO Toni Schneider has taken over as interim CEO while Bluesky searches for a permanent leader to guide the company’s next stage of growth.
Funding Will Support Growth of the Open Social Web
Bluesky says the new capital will help the company grow its team, improve the Bluesky app, and continue developing the AT Protocol, the decentralized social networking technology that powers the platform.
Unlike traditional social media platforms, Bluesky aims to build an open ecosystem where developers can create independent applications and communities while remaining connected through a shared protocol.
User Growth Continues to Accelerate
The company has experienced rapid growth over the past year. Bluesky reports that its user base has expanded from approximately 13 million users to more than 43 million users globally since its previous funding round.
The platform benefited from waves of users leaving X following policy changes and growing dissatisfaction with the platform formerly known as Twitter.
Competition in Social Media Is Heating Up
Bluesky now competes directly with platforms including X, Threads, and Mastodon in the race to define the future of social networking.
Its decentralized approach has attracted developers, creators, and users who want more control over their online communities and data. Investors appear to believe that this model could become a significant part of the next generation of social media.
What This Means for Bluesky
The combination of fresh funding and new leadership gives Bluesky resources to expand aggressively in the coming years.
The company’s biggest challenge will be turning rapid user growth into a sustainable business while maintaining its promise of an open and decentralized social network.
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