MouseShade is described as 'essential tool for everyone doing presentations or demos. If turned on, it dims the screen and puts a spotlight on the area around the mouse pointer, easily guiding the audiences attention to an area of interest' and is an app in the Office & Productivity category. There are four alternatives to MouseShade for Mac. The best alternative is KeyCastr, which is both free and Open Source. Other great apps like MouseShade are Mouseposé (Paid), Keystroke Pro (Paid) and Visualize (Paid).
Mouseposé is the indispensible mouse pointer highlighting tool (aka "virtual laserpointer") for everyone doing demos at tradeshows, presentations and trainings, or those individuals with huge and high resolution displays.
Visualize allows you to highlight your key presses and mouse clicks right on your desktop! The perfect tool for presentations or video tutorials, Visualize allows you to customize the look so your viewers can follow along with ease.