In the latest development in Bolt’s aggressive fundraising efforts, the fintech company’s CEO, Justin Grooms, has made a veiled threat of legal action against Silverbear Capital, the investment bank whose involvement in the deal remains in some dispute.
Miscommunication or Something More?
According to an email reportedly viewed by Forbes, Grooms wrote that "We believe there was some internal miscommunication at Silverbear Capital, one of our lead investors, which has caused unnecessary confusion." However, he quickly added that "The fact is, they signed a binding term sheet committing $200 million. Our exceptional legal team at Gibson, Dunn & Crutcher stands ready to represent the company in seeking to enforce our rights vigorously."
Bolt, which offers tools for one-click e-commerce checkout, did not immediately respond to a request for comment on this matter.
Silverbear Capital’s Response
On the other hand, Silverbear partner Veronica Welch told Forbes that "this never had anything to do with any miscommunications" and that the deal "was never discussed or approved in the company." Welch’s statement suggests that there may be more to the story than Grooms’ assertion of internal miscommunication.
The Deal Structure
Earlier this month, a leaked term sheet showed that Bolt was aiming to raise $200 million in equity funding and $250 million in "marketing credits" at a $14 billion valuation. The deal structure is unusual in that it would essentially force existing backers to either invest or lose their stakes in the company.
Silverbear’s Role
While Silverbear was initially reported to be leading the equity round, the firm’s partner Brad Pamnani recently told TechCrunch that they’re actually putting the deal together through a special purpose vehicle (SPV) managed by a private equity fund based in the United Arab Emirates. According to Pamnani, "At the beginning, I used my Silverbear email to respond to some things and that caused some confusion but Silverbear was never actually looking at this deal."
The London Fund’s Involvement
Meanwhile, the London Fund’s CEO confirmed in an interview with TechCrunch that the firm is contributing "marketing credits" to the deal. However, the London Fund released a statement Friday saying that it has not seen and cannot confirm the validity of any part of a document leaked to the press.
"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," the firm said. This statement suggests that there may be more to the story than what is being reported in the media.
What’s Next?
As the situation continues to unfold, it remains to be seen how this will impact Bolt’s fundraising efforts. Will the company be able to secure the funds it needs, or will this controversy derail its plans? Only time will tell.
Related News
- Bolt Raises $200 Million in Equity Funding and $250 Million in Marketing Credits at a $14 Billion Valuation: A leaked term sheet shows that Bolt is aiming to raise significant funding at a high valuation. (Source: TechCrunch)
- Silverbear Capital Leads Equity Round in Bolt’s Fundraising Effort: Initially, it was reported that Silverbear was leading the equity round, but now it seems they’re involved through an SPV. (Source: TechCrunch)
- The London Fund Contributes Marketing Credits to Bolt’s Deal: The firm’s CEO confirmed its involvement in the deal, but released a statement saying it has not seen or confirmed any part of the leaked document. (Source: TechCrunch)
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