Payment company Bolt is pursuing a bridge financing of up to $27 million. The company disclosed that this funds are mainly aimed at existing investors, with the purpose of addressing historical obligations and gaining time for the subsequent full E2 round of financing.
Financing comes with dilution clauses
This fund adopts a convertible bond structure, which can be converted into equity at a discount after the company completes a new round of financing in the future. At the same time, this round also includes a "paid participation" clause; existing shareholders who do not participate in the additional funding will face a significant dilution of their equity.
In a press release, the company stated that the new funds will be used to consolidate recent operational progress, clear up historical obligations, and ensure a smooth transition in subsequent financing. However, Bolt did not provide further details about the specific content of these historical obligations.
CEO Personally commits to contributing $5 million
Ryan Breslow to TechCrunch indicates that he will invest $5 million in this round of financing himself. Breslow re-assumed the position of CEO in March 2025, after the company had gone through years of legal disputes, investor conflicts, and business contraction.
He stated that the company is approaching profitability and has resumed growth after a period of consecutive revenue declines, but did not disclose the amount of cash remaining on its books. Bridge financing is typically used to supplement short-term funds before formal financing or to gain a buffer period for restructuring and improving cash flow.
- This round of financing scale: up to $27 million
- CEO Personal Commitment: 5 Million US Dollars
- Financing method: Convertible bonds
Valuation fell by 97% from its peak
Bolt reached a valuation of $1.1 billion in early 2022, before falling back to around $300 million. Previously, Breslow facilitated a $450 million financing round and sought a valuation of $14 billion, but that transaction was ultimately not completed.
At that time, several existing investors filed lawsuits to block the transaction, citing doubts about the authenticity of some lead investments and funding arrangements. The related lawsuits were later withdrawn by all parties involved, but this incident slowed down the company's subsequent financing progress.
Bet on super applications and AI for efficiency improvements
Breslow is currently placing its growth hopes on the "super app" launched by Bolt last year. This product integrates financial services, peer-to-peer payments, encryption capabilities, and credit card functionality, and continues to expand around the one-click checkout scenario.
At the same time, the company's workforce has been reduced from approximately 900 people in 2021 to around 60 people currently. Breslow believes that AI is helping the team maintain a higher level of development efficiency with fewer personnel.
Additional information:Bolt was co-founded in 2014 by Breslow. According to them, if the company can complete the subsequent E2 round of financing, it will continue to advance its business restructuring and growth plans.
