Former billionaire Ryan Breslow has shocked investors with his latest plan to raise $450 million for his payments startup Bolt at a $14 billion valuation. This move could reinstate him as CEO of the company, despite his tumultuous past of fraud allegations, layoffs, and legal battles. The deal, spearheaded by investment firms from the U.A.E and U.K, includes complex terms that have left investors enraged and confused.
One of the lead backers cited in official documents, Silverbear Capital, claims they have never had any discussions with Bolt and refuted their involvement in the deal. The confusion stems from a miscommunication where Silverbear had been mistakenly named in the investment plans. This revelation has caused a scramble among investors as they try to make sense of the shifting terms of the deal. Some shareholders are now considering legal action against Bolt and are boycotting the round entirely.
In addition to Silverbear Capital, investment firm The London Fund is also listed as a lead investor in the round. However, instead of cash, The London Fund has pledged $250 million in “marketing capital and dollar credits” from a platform called Influence, run by the fund’s CEO Ashesh Shah. The proposal includes various entanglements and conflicts of interests, raising concerns among investors about the integrity of the deal.
If the deal goes through, Breslow stands to receive generous terms including a closing bonus, revenue share, indemnity from legal action, and reimbursement of expenses. These terms have raised eyebrows among investors and industry experts, with some questioning the rationale behind such lavish rewards. Breslow had stepped down as CEO in January 2022 amid a Securities and Exchange Commission probe, which ultimately did not result in any enforcement action.
Breslow’s history with Bolt includes previous legal battles and disputes with investors, including a recent lawsuit from former board member Activant Capital. The lawsuit, which accused Breslow of stacking the board with his friends and defaulting on a $30 million loan, resulted in a settlement that saw Breslow repaying the loan through the cancellation of millions of his shares. Major investors, including Blackrock, are currently objecting to the terms of the settlement.
Overall, the latest funding round and potential reinstatement of Breslow as CEO have sparked controversy and confusion among investors and industry observers. The complex terms of the deal, involvement of various investment firms, and potential conflicts of interests have raised red flags and led to speculation about the future of Bolt under Breslow’s leadership. Investors are now left grappling with the implications of this latest development and considering their next steps in light of the unfolding situation.
