Bolt CEO Ryan Breslow seeks up to $27M bridge round to keep company afloat
Bolt CEO Ryan Breslow is raising up to $27 million in bridge financing to sustain the payments startup ahead of a planned larger funding round, after its valuation collapsed from $11 billion to roughly $300 million.
Ryan Breslow, who returned as CEO of Bolt last year following years of legal disputes and investor conflicts, is continuing his effort to keep the checkout processing company alive. Breslow told TechCrunch that Bolt, which he co-founded in 2014, is raising a bridge round of up to $27 million.
Bolt reached an $11 billion valuation in early 2022 before its value plunged 97% to about $300 million. Bridge rounds are typically used to tide a company over until its next major fundraise. In Bolt's case, the capital is being raised from existing investors as a convertible note that will turn into equity at a discount once a future round closes. The deal also includes a pay-to-play provision, meaning investors who don't participate stand to lose a significant portion of their equity.
According to a company press release, the financing will let Bolt capitalize on recent operational milestones, clear legacy obligations, and ensure a smooth transition toward closing its planned Series E2 round. Breslow declined to specify how much cash Bolt currently has left, but said the company is nearing profitability and returning to growth after years of declining revenue.
A previous attempt fell through
Two years ago, Breslow tried to raise $450 million at a $14 billion valuation, but that deal collapsed after existing investors, including BlackRock and Hedosophia, sued to block it following revelations about discrepancies involving named backers. The lawsuit was later dropped by all parties. Breslow says that, unlike that failed attempt, Bolt's board and a majority of preferred shareholders have approved the current round.
Breslow is personally putting in $5 million to signal confidence in the company and estimates that Bolt's roughly 100 investors will collectively contribute at least $15 million. The company has cut its headcount from 900 in 2021 to about 60 today, which Breslow attributes partly to efficiency gains from AI, saying the team is now shipping roughly ten times faster. Despite the challenges, Breslow says he has no intention of walking away from Bolt, even though he has been offered funding to start a new company instead.
