Payments processing startup Bolt is seeking to raise up to $27 million in bridge financing from its existing investors, in an effort to give the company additional time before closing a full Series E2 round. Ryan Breslow, the founder and current CEO, will contribute $5 million of his own money to the round.
Breslow told TechCrunch that the financing will be raised through a convertible note, meaning it will convert into shares upon the completion of a future financing round, with a discount for participating investors. The financing also includes a provision known as pay-to-play, which requires investors who do not participate in the round to forfeit a significant portion of their stakes in the company.
Short-Term Financing for a Company That Lost Most of Its Value
Bolt’s valuation reached approximately $11 billion in early 2022 before falling 97% to $300 million. The company does not disclose how much cash it has remaining, while Breslow says it is nearing profitability and returning to growth after years of revenue contraction.
The company said the financing will help it capitalize on “recent operational achievements” and settle prior obligations, paving the way to close a Series E2 round. But Breslow did not clarify the nature of those obligations. Bridge rounds are typically used to give companies six to 12 months to reach a subsequent financing or operational milestone, whether the company is performing well or needs to restructure and improve its cash position.
Breslow expects approximately 100 Bolt investors to provide at least $15 million, though not everyone will necessarily participate. An angel investor, who requested anonymity, also confirmed that they intend to participate. Breslow says the company’s board and a majority of its preferred shareholders have approved the round.
Complex Financial and Legal Context
The new round follows a failed attempt in 2024 to raise $450 million at a $14 billion valuation. That deal collapsed after existing investors, including BlackRock and Hedosophia, sued to block it, following the disclosure that an investor identified as a key backer denied participating, while another investor offered $250 million in “marketing credits” instead of cash. The lawsuit was later voluntarily withdrawn by all parties.
Breslow returned as CEO in March 2025, three years after leaving, and said at the time that he had begun early discussions for a new round. It took more than a year to reach the current financing announcement.
What Is Changing in Practice?
Bolt links its recovery prospects to a “super app” launched last year that combines financial services, peer-to-peer payments, cryptocurrencies, and credit cards in a one-click payment experience. The company has also reduced its headcount from 900 in 2021 to approximately 60 today. Breslow attributes the smaller team’s ability to accomplish more work at a faster pace to the use of artificial intelligence; these figures represent his personal estimate and are not independently published data.
This round shows that Bolt’s main challenge is no longer simply launching a new payments product, but proving that it can restore growth and profitability with a smaller workforce and a valuation far below its peak. The pay-to-play provision allows it to raise capital from existing investors, but increases the cost of not participating and makes the round’s success tied to the degree of backers’ confidence in Breslow’s plan. So far, the final financing amount, the amount of remaining liquidity, and the closing date for Series E2 remain undisclosed.