The startup world will be a very strange place.
In a letter to investors it was announced that Screw founder Ryan Breslow Returns as CEO to troubled startup and raises latest $450 million at $14 billion valuation from investors in the United Arab Emirates and the United Kingdom Information provided.
The valuation represents a significant turnaround for Bolt, which earlier this yr offered investors share buyback program that valued the company at just $300 million.
Bolt was one of the golden children of the 2020-21 go-go enterprise days. The company raised $355 million under the leadership of BlackRock The one-click online payments startup was valued at $11 billion in 2021, capitalizing on the pandemic-induced e-commerce euphoria.
But things quickly turned for the San Francisco-based startup, as lawsuits, money disputes and other issues brought unwanted headlines. In early 2022, Breslow stepped down as CEO after Twitter a tirade in which he criticized Combiner Y AND StripeThe company then announced layoffs — just six months after being valued at $11 billion — and has undergone at least three rounds of layoffs since then.
The startup was also defendant By Authentic Brands Group for unsuccessful integration with the retail network Forever 21claiming the retailer lost greater than $150 million in online sales as a result.
The company also experienced quite a few changes in its management board and problems with your investorsand earlier this yr, former CEO Maju Kuruwilla he left the company.
More bad blood?
Perhaps the internal struggle is not over yet.
According to a latest report, the latest capital to be raised requires previous investors to buy the latest round “in a proportion of twice their current percentage stake” or their shares will lose their preferred status, and many shares may very well be bought back for about a cent.
This could upset some older investors, especially considering the company was looking to buy back shares at a $300 million valuation a few months ago and now wants investors to put up additional cash at a $14 billion valuation.
Bolt has already raised almost $1 billion from investors including: General of the Atlantic AND The capital of the tribe.
If Bolt’s story has taught us anything, it’s that more investor disputes and internal conflicts will soon emerge.