Skyseed VC: Funding Decentralized Social Media

With walled gardens and advertising-driven social networks prevailing, a new initiative is making waves. On November 14, Peter Wang, co-founder of Anaconda and a staunch advocate for the decentralized web, posted a simple request on Bluesky: ideas for a new incubator and fund to support experimental projects built on the AT Protocol. Just four weeks later, Skyseed was born, backed by an initial $1 million commitment.

This rapid turnaround reflects the rising momentum behind Bluesky, which is becoming a refuge for users seeking alternatives to traditional social platforms like X. It also highlights a growing hope that open, decentralized protocols like AT Protocol can create a new era of social networking—one free from the pitfalls of ad-driven platforms.

A Fresh Start with Open Protocols

For Wang, the current social media world, dominated by closed ecosystems, leaves much to be desired. “The main difference between an open protocol versus a closed one is that the closed ones will never tolerate applications that take content or user attention away from their properties,” he explains. In contrast, the AT Protocol promises a user-first approach, enabling people to own their data and seamlessly migrate between platforms.

Wang’s commitment to decentralization isn’t new. He has previously funded projects like the Beaker browser, a peer-to-peer web browser, whose foundational work now benefits Bluesky. “The heart of Beaker continues with Bluesky,” said Beaker’s creator and Bluesky CTO, Paul Frazee.

With Skyseed, Wang is formalizing his efforts. The fund will serve as a platform to support developers building tools and services that leverage the AT Protocol.

Skyseed’s Vision

Skyseed has two primary components: a fund and an incubator. Wang himself has contributed most of the initial $1 million, with angel investors adding significant sums, growing the fund closer to $1.5 million. The fund aims to deploy capital in two ways:

1. Equity Investments: Early checks of around $100,000 will target projects with clear business models and capable teams.
2. Developer Grants: Smaller grants, ranging from $5,000 to $25,000, will support individual developers with strong technical visions and a proven ability to execute.

Beyond funding, Skyseed’s incubator will serve as a collaborative space where innovators can exchange ideas and build complementary projects. “It’ll be a fairly active mentorship network,” Wang says, emphasizing the potential for founder matchmaking and shared learning.

Decentralization’s Moment

While decentralized platforms are not a new concept, Wang believes the AT Protocol has reached a pivotal moment: “We’ve had lots of good ideas; we’ve just not had the users. Now we have the users.”

Bluesky’s early traction has sparked interest in a diverse range of projects, from social platforms tailored for children and marginalized communities to alternatives for Reddit, SoundCloud, and even Google Maps. These projects showcase the AT Protocol’s potential to enable modular ecosystems where new apps can flourish.

Wang sees Skyseed as a chance to chart a new path for social networking. While advertising may still play a role, it doesn’t have to dominate. “The big social media companies stumbled into advertising and the attention economy, and by then it was too late. We’re going to try a different evolutionary path,” he says.

Challenges and Opportunities

Despite its promise, Bluesky is still a privately held company with venture capital backing, leaving room for potential pitfalls. However, Wang remains optimistic, emphasizing the resilience of open-source ecosystems. “If users rebel against a project’s direction, they can make a fork and use that. You always have this right to exit and do alternative innovation,” he notes.

Skyseed itself is a lean operation, with no managing partners or admins. Wang is spearheading the effort while relying on a network of allies. “It really is something I’m doing on the side,” he admits, but his vision for Skyseed is clear: empower creators, build meaningful tools, and redefine what social platforms can be.

As Skyseed begins its journey, its success could signal a broader shift in how we think about digital platforms and the value of decentralization in an increasingly interconnected world.