Bolt, the checkout-processing startup, is raising a bridge round of up to $27 million as it attempts to steady its finances under founder Ryan Breslow, who returned as chief executive last year following legal disputes and investor clashes. The company's valuation has collapsed from $11 billion in early 2022 to around $300 million, and although Breslow insists Bolt is nearing profitability and returning to growth, the new financing may represent a last-ditch effort to keep it afloat.

The round is being raised from existing investors as a convertible note with a "pay-to-play" clause, meaning non-participating backers stand to lose much of their equity, and it will convert to shares at a discount once a future funding round closes. Breslow is personally putting in $5 million and expects Bolt's roughly 100 investors to contribute at least $15 million in total. The move follows a failed $450 million raise two years ago that collapsed amid lawsuits from investors including BlackRock and Hedosophia, though Breslow says this time the board and a majority of preferred shareholders back the plan.