In a saga of high-stakes finance drama, Bolt’s recent fundraising efforts have hit a snag. The fintech company’s CEO is hinting at legal action against Silverbear Capital. The bone of contention? A disputed $200 million deal.
The Alleged Miscommunication
Bolt’s CEO, Justin Grooms, is throwing shade at Silverbear Capital, blaming an alleged internal miscommunication for the kerfuffle. ‘We believe there was some internal miscommunication at Silverbear Capital, one of our lead investors, which has caused unnecessary confusion,’ Grooms wrote in an email obtained by Forbes.
He went on to say that Silverbear had signed a binding term sheet committing $200 million to Bolt. Grooms also mentioned that their legal team at Gibson, Dunn & Crutcher is ready to go to bat for them if need be.
Silverbear’s Side of the Story
Veronica Welch, a partner at Silverbear, isn’t having any of it. She told Forbes that this whole mess isn’t about miscommunication. Instead, she claims the deal ‘was never discussed or approved in the company.’ Welch’s statement is throwing a whole new level of confusion into the mix.
Earlier, a leaked term sheet suggested Bolt aimed to raise $200 million in equity funding, along with $250 million in ‘marketing credits’ at a sky-high $14 billion valuation. It had a controversial pay-to-play deal structure forcing existing backers to either pony up or get out.
Special Purpose Vehicle Mystery
Brad Pamnani, another player from Silverbear, said he’s actually putting the Bolt deal together through a special purpose vehicle (SPV). This SPV is apparently managed by a private equity fund in the UAE, which only adds to the convoluted drama. Talk about keeping things complicated.
Pamnani admitted using his Silverbear email to kick-off some initial discussions, which caused some confusion. But he insists that Silverbear was never really in on this deal, which raises questions about who’s actually in control here.
Meanwhile, The London Fund’s CEO stepped in to confirm they’re only contributing ‘marketing credits’ to Bolt. But even The London Fund can’t validate the leaked document, leaving plenty of room for skepticism.
The Leaked Term Sheet
Earlier this month, a term sheet was leaked showing Bolt’s aggressive fundraising targets. It revealed Bolt was aiming for $200 million in equity and another $250 million in marketing credits, with a insane pay-to-play rule.
The pay-to-play structure essentially puts existing investors in a vice, forcing them to either cough up more cash or lose their stakes. It’s brutal but effective, pushing investors to make tough decisions quickly.
Silverbear was initially reported to be leading this round of funding, but given the current confusion, it’s a big question mark now. Was Silverbear ever really in, or just a name thrown around?
The Role of The London Fund
The London Fund has also been dragged into this complicated web. While they did confirm discussions with Bolt’s management, they’ve been tight-lipped about specifics.
In an interview, The London Fund made it clear they haven’t finalized any transactions with Bolt. This leaves us wondering just how solid Bolt’s financial backing really is.
The firm stated, ‘We can confirm that there have been discussions between The London Fund and Bolt’s management; however, at no point have we stated that a transaction has concluded.’
Groom’s Response
Amid all this, Grooms seems confident in Bolt’s stance. He believes the term sheet is binding, and that Silverbear is obligated to follow through.
He’s positioning Bolt as ready to take any necessary legal measures. This hard stance aims to reassure other potential investors that Bolt means business.
While Grooms is adamant about the binding nature of the term sheet, there remains a level of uncertainty. His legal threats might just be a strategy to put pressure on Silverbear.
Looking Forward
As Bolt navigates these choppy waters, its future fundraising efforts hang in the balance. The fintech firm has big ambitions, but these internal disputes could scare off new investors.
The tangled web of accusations, legal threats, and contested documents paints a murky picture. Will Bolt come out on top, or is this the beginning of more troubles?
One thing’s for sure: the fintech world is watching closely, waiting to see how this high-stakes drama unfolds. Investors and competitors alike are keen to see if Bolt can pull through.
This controversy between Bolt and Silverbear Capital has all the makings of a financial thriller. With accusations flying and legal threats looming, it’s uncertain how this drama will end.
What’s clear is that Bolt is not backing down, despite the growing complexities. The fintech company remains focused on its aggressive growth strategy, even as it battles significant challenges.
Source: Techcrunch