If you want to invest in Bluesky, the latest hot new social media platform, it is possible, but it is not easy or risk-free. But getting in early does come with potentially greater rewards. We’ve put together this guide that shows where you can invest in Bluesky and what the pros and cons of doing so are.
Bluesky is a decentralized social media platform that has gradually been accumulating users from Twitter, who have become disenfranchised from Twitter because of the way it is run by Elon Musk and general polar opinion.
But, as Bluesky is currently a privately held company which means you cannot buy it on a normal stock exchange in the same way as Meta Platforms (META) or Snapchat (SNA).
There is a listed company called Bluesky Digital Assets Corp, but that is a micro-cap company (worth 23m CAD) based in Canada that is engaged in Bitcoin and Ether and developing value-added technology services for the digital currency market (cryptocurrency), such as proprietary technology solutions. So, not the same thing at all. But maybe as speculative, depending on your point of view.
As Bluesky’s popularity has grown, tech investors have been keeping a close on it and backing the company with early-stage funding. In total Bluesky has raised over $36m from 26 different investors, including an initial seed round from Jack Dorsey, the founder of Twitter.
So, if you want to invest in Bluesky you have to invest in one of those private equity firms that has invested in the company in their series A fundraise that include:
- SevenX Ventures
- Alumni Ventures
- True Ventures
- Eterna Capital
- Blockchain Capital
- Protocol Labs
- Outset Capital
But, I’m afraid it’s not that easy. To invest in private equity funds you need a significant amount of money to invest that you are prepared to lock away for years or even decades, with no potential access to it and accept the risk that you may lose all your money.
You will also have to face dillution risk as if Bluesky needs to raise more funds, new shares will be issued, reducing the percentage of your investment. You also face the risk of the private equity fund making bad investments in other companies. As unfortunately, it’s not possibleto ivnest in just one of their investments, you have to invest in their portfolio as a whole.
So, yes it is possible to invest in Bluesky, but it is very hard and very risky…
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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