Bolt co-founder and CEO Ryan Breslow is attempting to rescue the checkout processing startup by raising up to $27 million in a pay-to-play bridge funding round, according to TechCrunch. The company, which reached an $11 billion valuation in early 2022 before dropping 97% to $300 million, is using the short-term financing to cover legacy obligations and fund operations as it works toward a full Series E2 round, according to a company press release cited by TechCrunch.
Bridge Financing Terms and Pay-to-Play Structure
The new capital is being raised from existing investors and structured as a convertible note, according to TechCrunch. This means the debt will convert into equity at a discount once Bolt closes a subsequent funding round. The financing includes a punitive pay-to-play provision, meaning backers who choose not to participate in the round will lose a large portion of their existing equity in the company, as reported by TechCrunch.
Breslow told TechCrunch that he is personally committing $5 million to the round. He estimates that participation from Bolt’s roughly 100 investors will total at least $15 million, though he acknowledged that not every investor is expected to join.
Company Financials and Historical Context
Breslow declined to disclose how much cash Bolt currently has remaining, but he told TechCrunch that the company is nearing profitability and returning to growth after years of shrinking revenue. Startups typically utilize bridge financings either when they are performing well and need a runway to hit their next milestone, or when they are running low on capital and require time to restructure, according to TechCrunch reporting.
The current fundraising effort follows a turbulent period for the startup. Two years ago, Breslow attempted to raise a $450 million round at a $14 billion valuation. That deal collapsed after existing investors, including BlackRock and Hedosophia, filed a lawsuit to block it, following revelations regarding participating backers. That lawsuit was later voluntarily dismissed by all parties, according to TechCrunch.
Future Strategy and Leadership
Breslow returned as Bolt’s CEO in March 2025, three years after stepping down from the role. He maintains that Bolt would be in a stronger position today had he remained at the helm between 2022 and 2025, stating to TechCrunch that the company lost customers while he was away.
To drive future growth, Breslow is betting on the “super app” that Bolt introduced last year, which integrates financial services, peer-to-peer payments, crypto, and credit cards into a single checkout system, according to TechCrunch. Whether Bolt’s remaining backers share that confidence and help hit the fundraising target remains to be seen.
Keep reading