Ryan Breslow, the controversial entrepreneur who returned as CEO of Bolt last year after years of legal battles and clashes with investors, refuses to give up on the checkout processing startup he co-founded in 2014.
The company, which hit an $11 billion valuation in early 2022 before plummeting 97% to $300 million, is now raising a bridge round of up to $27 million, Breslow told TechCrunch. Bridge rounds are short-term financings meant to tide a company over until its next major fundraise.
The capital is being raised from existing investors and structured as a convertible note, meaning it will turn into equity at a discount once Bolt closes a future funding round. It also includes a punitive ‘pay-to-play’ provision, meaning backers who don’t participate will lose a large portion of their equity in the company.
Although Breslow didn’t frame it as such, the new financing may be the company’s last shot at survival. “This financing allows us to capitalize on our recent operational milestones, clear legacy obligations, and ensure a seamless transition as we progress toward the closing of our full Series E2 round,” according to a company press release. Breslow did not respond to requests for comment on what constitutes those legacy obligations.
