Ryan Breslow is raising up to $27M in pay-to-play bridge funding to save Bolt
Bolt CEO Ryan Breslow is attempting to save the struggling checkout startup by raising $27 million in 'pay-to-play' bridge funding. The company, which saw its valuation drop from $11 billion to $300 million, is using this capital to clear legacy obligations and reach profitability.
Why it matters
This situation illustrates the extreme volatility of high-valuation startups and the aggressive financial measures taken by founders to avoid total collapse.
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.
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