AltStore Raises $6M to Connect with the Fediverse - Alternative App Store News

AltStore Connects to the Fediverse and Secures $6 Million in Funding

AltStore, a prominent third-party application marketplace, is poised to integrate its platform with the fediverse, the decentralized social web.

This integration will enable users of open social applications, such as Mastodon and Meta’s Threads, to receive updates regarding their preferred applications in a novel manner.

New Investment and Board Member

The startup has also announced its inaugural funding round from external investors, securing a $6 million Series A investment led by Pace Capital.

This investment grants the venture firm a 15% equity stake in AltStore and will facilitate the expansion of the company’s team beyond its co-founders, Riley Testut and Shane Gill.

Furthermore, Mike McCue, the CEO of Flipboard and a strong advocate for the fediverse, is joining AltStore’s board of directors.

Expansion Plans and Market Opportunities

Based in New York, the founders state that the new capital will be instrumental in capitalizing on the potential of alternative app stores, not only within the EU but also in other regions as new competition regulations are enacted.

AltStore has already outlined plans to extend its storefront to markets including Australia, Brazil, and Japan this year, a move made possible by the increased staffing capacity afforded by the new funding.

Growth Driven by the Digital Markets Act

AltStore has experienced significant growth since the EU’s Digital Markets Act (DMA) fostered greater competition within the app store landscape, compelling tech giants like Apple to allow new competitors to operate.

Initially offering its own third-party applications, notably the video game emulator Delta, AltStore began incorporating other third-party apps in June 2024.

This expansion included the virtual machine app UTM, which subsequently prompted Apple to permit virtual machines within its own App Store.

Strategic Partnerships and Content Diversification

In August of the previous year, AltStore collaborated with Epic Games to bring Fortnite and other mobile games to its EU storefront, AltStore PAL.

The company also ventured into the adult app market this year by hosting Hot Tub, the first iOS application dedicated to pornography, which has since become its most popular app.

Developer Support and Self-Publishing

Beginning in April, AltStore enabled developers to freely self-publish their applications on AltStore PAL, further accelerating its growth.

Currently, the store boasts over 100 developers, exceeding the number on Epic Games’ alternative games store.

App Variety and Business Model Flexibility

AltStore’s appeal extends beyond gaming, attracting a diverse range of developers, including independent creators and those whose applications may not meet Apple’s stringent criteria, such as content restrictions.

Developers also appreciate the store’s support for various business models, including traditional subscriptions and user-funded development initiatives.

“We have hundreds of thousands of users,” AltStore co-founder Testut shared with TechCrunch. “Wonderful and good numbers.”

Introducing a Social Layer with Mastodon Integration

Alongside the funding, AltStore is launching its own Mastodon server, utilizing the ActivityPub protocol, to provide users with app updates and information from followed sources.

Developers can choose to have their app updates published to this new server.

“If you have a Mastodon account or a Threads account, you could follow these accounts from our Mastodon server and see app updates in your timeline,” Testut explained.

Automated Updates and Social Interaction

These updates will be automated through a JSON file containing metadata, transmitting information from AltStore to the fediverse.

“It’s adding a social layer,” Testut stated. “People can reply to apps from their Mastodon account and like content from their Threads account.” Plans are also underway to connect the service with Bluesky, leveraging tools from A New Social.

Enhanced Discoverability

This service will also improve app discoverability, allowing users to explore the server and its associated accounts to find new applications.

Supporting the Fediverse Ecosystem

With the additional funding, AltStore intends to contribute back to the ecosystem that underpins its social network.

To this end, the company is allocating $500,000 to various fediverse projects.

Donations have already been made to Mastodon gGmbH ($300,000), Bridgy Fed by A New Social, Ivory + Phoenix by Tapbots, Tapestry by The Iconfactory, mstdn.social, Akkoma, PeerTube, BookWyrm, and Fedify.