Bolt’s CEO hints at potential legal action against Silverbear Capital amid ongoing disputes over the investment bank’s role in the fintech company’s fundraising efforts
According to Forbes, CEO Justin Grooms wrote in an email that was reportedly viewed, “We think that there was some internal miscommunication at Silverbear Capital, one of our lead investors, which has resulted in unnecessary confusion.”
“The reality is that they executed a legally binding term sheet that allocated $200 million.” Gibson, Dunn & Crutcher’s exceptional legal team is prepared to enforce our rights on behalf of the company vigorously.
Bolt, which provides tools for one-click e-commerce payment, did not immediately respond to a request for comment. According to Forbes, Silverbear partner Veronica Welch stated that the transaction was never discussed or approved within the company and that “this never had anything to do with any miscommunications.”
In an unusual pay-to-play deal structure, Bolt sought to raise $200 million in equity funding and $250 million in “marketing credits” at a $14 billion valuation, as indicated by a leaked term sheet earlier this month. This structure would require existing backers to invest or forfeit their stakes in the company.
Although Silverbear was initially reported to be leading the equity round, the firm’s partner, Brad Pamnani, recently informed TechCrunch that he is facilitating the transaction through a special purpose vehicle (SPV) managed by a private equity fund based in the United Arab Emirates.
Pamnani stated, “I utilized my Silverbear email address to respond to certain inquiries, which resulted in some confusion. However, Silverbear was never actually concerned with this transaction.”
In the interim, the CEO of The London Fund verified in an interview with TechCrunch that the company is contributing “marketing credits” to the agreement. However, The London Fund stated on Friday that it has not reviewed and is unable to “confirm the validity of any part of a document leaked to the press.”.
“We can verify that there have been discussions between The London Fund and Bolt’s management; however, we have never indicated that a transaction has been finalized,” the firm stated.
