Custom Feed Builder Graze Captivates Investors with Innovative Growth on Bluesky

Graze, an innovative startup, is revolutionizing the way users interact with the Bluesky social network by enabling them to create personalized feeds. This exciting platform not only allows users to build, customize, and manage their feeds effortlessly but also opens avenues for monetization through advertising, sponsored posts, and subscription options. Investors are increasingly taking notice of Graze’s potential, with the company preparing to announce the successful closure of an oversubscribed pre-seed funding round.

Rapid Growth and Unique Business Model

According to Peat Bakke, co-founder and CEO of Graze, this startup is experiencing an extraordinary growth trajectory. “I’ve been doing tech startups for 30 years, and this is actually the craziest early-stage growth curve I’ve ever seen,” Bakke explained. Graze has transitioned from having no traffic to serving hundreds of thousands of unique users daily, generating tens of millions of content impressions largely through word of mouth.

Founders with a Vision

Bakke is collaborating with Devin Gaffney, who has a rich background in social media and network analysis. The duo previously co-founded Little Bird, a social data analysis startup that analyzed Twitter’s full feed. Now, they are leveraging the new generation’s data stream, the “Jetstream” from Bluesky, which encompasses public posts from over 30.3 million users.

The Opportunity in the Social Media Landscape

With a significant number of users migrating from other platforms like X to Bluesky, especially following the recent U.S. presidential elections, the timing for Graze’s launch couldn’t be better. The founders recognized this opportunity and began developing the tool in November, allowing Bluesky users to create custom feeds using advanced algorithms and filters.

A Democratized User Experience

While Bluesky shares similarities with X in terms of its text-first layout, it provides a more democratized experience. Users can operate their own Bluesky Personal Data Servers, set moderation controls, and create custom feeds, reducing reliance on the platform’s algorithm.

Innovative Features of Graze

Graze’s platform operates on Bluesky’s Jetstream, providing users with the tools not only to build feeds but also to create their own websites based on filtered Jetstream data. For instance, one Graze client is developing a social media platform dedicated to professional cycling, allowing the customization of algorithms to track specific teams and maintain content moderation.

• Graze has powered popular feeds such as News and BookSky.
• Several apps are utilizing Graze’s toolset to create unique video experiences akin to TikTok.

Monetization Strategies

What sets Graze apart is its pioneering approach to monetizing custom Bluesky feeds, with the support of the Bluesky team. The startup has successfully tested sponsored posts, integrating ads into feeds while ensuring that content creators retain complete editorial control. As Bakke notes, advertisers must obtain consent from feed operators for sponsored posts, ensuring a balanced ecosystem.

The pricing for ads is flexible, with an initial recommendation of a $1 to $3 CPM rate, significantly lower than other social media platforms, while maintaining comparable engagement rates.

Future Developments and Revenue Sharing

Graze is also working on features for private feeds that may require subscription payments for access. The startup plans to implement a 30/70 revenue split, similar to the App Store, benefiting content creators. Furthermore, Graze aims to introduce a marketplace to connect brands with content creators, enhancing advertising opportunities.

Currently, Graze operates from Portland with a dedicated team of three, including front-end developer Andrew Lisowski, who is based in San Jose.

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