The controversial co-founder of Bolt, Ryan Breslow, returned as CEO earlier this month after a lengthy period of being completely removed from the company. Breslow stepped away from Bolt after taking a personal $30 million loan out of the company, which ignited immense legal troubles for him and the company. However, with the litigation now settled and things moving forward, Breslow is back in the driver’s seat and eager to prove he deserves it.
Immediately after reclaiming his position, Breslow announced that Bolt plans to launch an “everything app” integrating one-click checkouts for everything from crypto to financial services “very soon.”
The legal battle over the loan above began in 2023 when Bolt investor Activant sued Breslow. Activant claimed Breslow deliberately put the startup company $30 million in debt thanks to borrowing money that he ultimately defaulted on, paying it back with company funds. Bolt eventually agreed to purchase Activant’s shares for $37 million last year, giving the startup a $7 million profit for their troubles.
Speaking Up
Speaking at Fintech Meetup in Las Vegas yesterday, Breslow defended his decisions regarding the loan, saying that it was far less the kind of malicious move that the lawsuit made out to be and far more an act of loyalty to Bolt.
“It was done to be pro-Bolt,” Breslow said. “I took it out instead of selling any meaningful secondaries. I wanted to show our investors that I’m keeping all my chips in; I believe so much in the stock that I’m not selling my shares.”
While Breslow admitted he made “a ton of mistakes,” he said they were not the ones he was accused of. He viewed his main mistake as allowing people to join Bolt’s cap table, which he “did not know very well,” and slammed Activant in the process.
Bolt’s ARR stood at about $28 million with $7 million in gross profit as of the end of March 2024, tech publication Newcomer reported last year. That’s small compared to Revolut, which announced $2.2 billion in revenue and $545 million in profits (before tax) for 2023 alone.
Further Troubles?
The big question remaining about Bolt is the status of its next fundraising campaign.
In August, news broke about a pending $450 million fundraising deal. However, it raised questions over its unusual use of $250 million in “marketing credits” and lack of confirmation from an investor mistakenly identified as its lead. Some of Bolt’s investors, including BlackRock and Hedosophia, sued to block the round, Forbes reported, but all parties have voluntarily dismissed that, Bolt announced today.
Breslow noted during his speech that “all” the legal cases against him are “fully settled, dismissed” but didn’t provide an update on the $450 million fundraise. He did comment, though, that he’s been “humbled” by his experience and has found a newfound determination to run Bolt successfully.
“You know, I make mistakes, but I’ve got a very big chip on my shoulder,” Breslow said. “I’m ready to take Bolt to new heights.”
