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Bolt Raises $450M at $14B Valuation as Ryan Breslow Returns in Pay-to-Play Deal

Aug 20, 2024, 03:49 PM

Bolt, the e-commerce technology company, is reportedly raising $450 million at a $14 billion valuation as Ryan Breslow returns as CEO. The financing deal is structured as a 'pay-to-play' arrangement, requiring existing investors to increase their stake to maintain liquidation preferences, with a speculated 3x preference. This move is seen as a strategy to avoid a markdown for current investors. The valuation has raised eyebrows, given Bolt's reported $19 million in revenue for the first nine months of 2023, leading to skepticism about the legitimacy of the $14 billion figure. Interim CEO Justin Grooms detailed the capital raise in a letter to investors, highlighting the ultimatum for current stakeholders.