Breaking News: Bolt CEO Threatens Legal Action Against Main Investor Amid $450 Million Fundraising Efforts - Forbes
In a shocking turn of events, Bolt's CEO Justin Grooms has issued a veiled threat of legal action against Silverbear Capital, one of the lead investors in their aggressive $450 million fundraising campaign. Grooms cited internal miscommunication at Silverbear Capital, claiming they had signed a binding term sheet committing $200 million. The situation has caused confusion and Bolt is prepared to enforce their rights with the help of legal experts at Gibson, Dunn & Crutcher.
However, Silverbear partner Veronica Welch denies any miscommunications and insists the deal was never discussed or approved by the company. The leaked term sheet revealed Bolt's plan to raise $200 million in equity funding and $250 million in marketing credits at a $14 billion valuation. The deal structure included a pay-to-play mechanism that could impact existing backers.
Initially, Silverbear was reported to lead the equity round, but partner Brad Pamnani clarified that they are forming a special purpose vehicle (SPV) managed by a private equity fund in the UAE. Pamnani admitted to using his Silverbear email initially, causing confusion, but stated that Silverbear was not involved in the deal.
The London Fund's CEO confirmed contributing marketing credits to the deal, but the firm released a statement expressing uncertainty about the leaked document's validity. While discussions between The London Fund and Bolt's management took place, no transaction has been finalized.
In conclusion, the ongoing dispute between Bolt and Silverbear Capital highlights the complexities of fundraising in the fintech industry. Investors and stakeholders should closely monitor the situation to understand the potential impact on Bolt's future growth and financial stability. Stay tuned for more updates on this developing story.