Bolt raises up to $27 million in bridge financing
Payments startup Bolt is raising $27 million in bridge financing from existing investors to reach profitability. CEO Ryan Breslow is personally contributing $5 million to the round, which includes a pay-to-play provision for stakeholders.
Why it matters
Reflects the ongoing financial restructuring of a once high-valued fintech startup attempting to stabilize its operations.
--> Payments startup Bolt, which works with online checkout, is raising up to $27 million in bridge financing from existing investors. The company’s CEO, Ryan Breslow, intends to personally invest $5 million in the round, TechCrunch reports .
The funds are being raised in the form of a convertible loan that will convert into shares at a discount after Bolt’s next funding round. The deal also includes a pay-to-play provision: investors who do not participate in the new financing will lose a significant portion of their stake in the company.
In a press release, Bolt said the funds are intended to help the company capitalize on its recent operational results, settle longstanding obligations and ensure a transition toward closing a full Series E2 round. Breslow did not answer questions about what exactly the company considers such obligations.
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