Business & Finance
Bolt seeks up to $27 million in bridge round as founder Ryan Breslow commits $5 million
The checkout processing startup is raising capital with a pay-to-play provision following significant valuation declines and workforce cuts.
The short version
- Bolt is raising a bridge round of up to $27 million, structured as a convertible note with a punitive pay-to-play provision for existing investors.
- CEO and co-founder Ryan Breslow is personally contributing $5 million and estimates total investor participation will reach at least $15 million.
- The funding attempt comes after Bolt's valuation dropped 97% from its $11 billion peak in 2022 and its workforce was reduced from 900 to roughly 60 employees.
Key facts
- Bolt is seeking up to $27 million in short-term bridge financing structured as a convertible note.[TechCrunch]
- The financing round includes a pay-to-play provision that penalizes existing investors who choose not to participate by diluting their equity.[TechCrunch]
- Ryan Breslow is personally committing $5 million to the funding round.[TechCrunch]
- Bolt's valuation fell from an $11 billion peak in early 2022 to $300 million.[TechCrunch]
- Bolt's board and a majority of preferred shareholders have approved the fundraise.[TechCrunch]
- The company's headcount has decreased from 900 workers in 2021 to about 60 currently.[TechCrunch]
What remains uncertain
- The exact amount of cash remaining in Bolt's reserves was not disclosed.[TechCrunch]
- The total number of Bolt's roughly 100 existing investors who will agree to participate in the round remains uncertain.[TechCrunch]