Graze, a Portland-based startup, has caught the attention of investors with its innovative approach to monetizing the Bluesky social network. The company's platform allows users to build and customize their own feeds, and soon, creators will be able to earn revenue through advertising, sponsored posts, and subscriptions. This novel approach has led to an oversubscribed pre-seed round of funding, with investors eager to tap into Graze's rapid growth and potential for disrupting the social media landscape.

Graze's founders, Peat Bakke and Devin Gaffney, bring a wealth of experience in social media and network analysis, having previously worked together on Little Bird, a social data analysis startup. They saw an opportunity in Bluesky's open and decentralized architecture, which allows anyone to run their own Personal Data Server and set moderation controls. This democratized approach has attracted millions of users, with Bluesky adding 23 million users over the past year.

Graze's tools have rapidly gained traction, with users creating custom feeds using complex logic, multiple filters, and rules. The platform operates on Bluesky's Jetstream, utilizing the AT Protocol (atproto) to enable users to build not only feeds but also their own websites and experiences. This flexibility has attracted a range of customers, from a social media platform focused on professional cycling to apps building "TikTok for Bluesky"-type video experiences.

What sets Graze apart is its focus on monetizing these custom feeds. The startup has already tested sponsored posts, which load ads into custom feeds with the feed operator's consent. This approach ensures that advertisers can target specific feeds without compromising user privacy. Graze is also exploring private feeds, including those that require subscription payments to access. The company plans to split revenue with creators, taking a 30% share, similar to the App Store model.

Graze's CEO, Peat Bakke, emphasized the importance of maintaining a balanced ecosystem, where feed operators have editorial control and users are not overwhelmed by ads. He also highlighted the potential for brands to connect with targeted feeds, citing the example of a cat food brand advertising in a feed focused on cats. With its creator marketplace set to launch next week, Graze is poised to revolutionize social media monetization and provide a new revenue stream for creators.

As Graze prepares to announce its funding round, the startup's growth and innovative approach have positioned it as a key player in the evolving social media landscape. With its focus on user customization, privacy, and monetization, Graze is well-placed to capitalize on the shift towards decentralized social networks.