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Bolt’s CEO threatens legal action against Silverbear Capital over a disputed funding deal.
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Silverbear Capital denies any involvement in the deal, citing internal miscommunication.
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Bolt aims to raise $200 million in equity funding and $250 million in marketing credits at a $14 billion valuation.
Bolt, a fintech company, is embroiled in a funding dispute with Silverbear Capital, an investment bank. Bolt’s CEO, Justin Grooms, has threatened legal action against Silverbear, alleging that the bank signed a binding term sheet committing $200 million but is now backing out. Silverbear denies any involvement, citing internal miscommunication.
The dispute revolves around Bolt’s aggressive fundraising efforts, seeking $200 million in equity funding and $250 million in marketing credits at a $14 billion valuation. The deal structure is unusual, with a pay-to-play provision that forces existing backers to invest or lose their stakes. Silverbear’s involvement was initially reported, but the bank now claims it was never discussed or approved.
The situation is further complicated by the involvement of other parties, including The London Fund, which is contributing marketing credits to the deal. However, The London Fund has not confirmed the validity of any leaked documents. The dispute highlights the challenges and complexities of fundraising in the fintech industry.
