Ryan Breslow, CEO of Bolt, is raising up to $27 million in bridge funding to stabilize the checkout startup, which was once valued at $11 billion. The funding, structured as a convertible note, includes a 'pay-to-play' provision that could significantly impact equity for non-participating investors. Breslow is personally investing $5 million to demonstrate his commitment to the company's recovery.
The financing comes after a tumultuous period for Bolt, including a failed $450 million funding round. While Breslow claims the company is nearing profitability, the outcome of this funding effort will depend on the participation of existing investors, with an estimated $15 million expected from them. The company has drastically reduced its workforce but is leveraging AI to enhance efficiency.