Former billionaire Ryan Breslow has shocked investors once again with his latest move to raise $450 million for his payments startup Bolt at a $14 billion valuation. This move could potentially reinstate him as the CEO of the company, despite his troubled history with fraud allegations, legal battles, and massive layoffs. The plan was announced in an email to shareholders by Bolt’s interim CEO Justin Grooms, triggering anger among investors due to the complex terms that could benefit Breslow and a tight ultimatum to invest in the company.
One of the lead backers named in the official documents, Silverbear Capital, denied any involvement in the deal and stated that they had never discussed the investment with Bolt. The confusion surrounding the deal stemmed from a miscommunication where Silverbear was mistakenly identified as a lead investor in the $200 million investment. The Abu Dhabi-based fund that was supposed to provide the investment was also not disclosed, adding further uncertainty to the situation.
The deal involves other unconventional arrangements, such as The London Fund offering $250 million in “marketing capital and dollar credits” from their platform Influence, run by CEO Ashesh Shah. Shah believes that Bolt can leverage the platform’s influencers to drive marketing efforts and transform the company into a super app similar to WeChat. However, the convoluted nature of the deal has left investors questioning potential conflicts of interest and expressing concerns about their investments with Bolt potentially being wiped out.
If the deal goes through, Breslow stands to receive significant bonuses and benefits, including a $2 million closing bonus, Lifetime net revenue share, indemnity from legal action, reimbursement for expenses, and a monthly travel and security fee. Despite the generous terms, Breslow’s return as CEO hinges on the agreement of majority preferred shareholders, who are facing a tight deadline to make a decision on the investment.
Bolt’s tumultuous journey under Breslow’s leadership, including legal battles, financial disputes, and regulatory scrutiny, has cast a shadow over the company’s future. The latest funding round and potential reinstatement of Breslow as CEO have added further complexity and uncertainty to the situation, with investors weighing their options and considering legal action against the company. The outcome of this high-stakes saga will determine the future direction of Bolt and its stakeholders as they navigate through a challenging and turbulent period.
