Ryan Breslow Returns as Bolt CEO After Controversy

Ryan Breslow Returns as CEO of Bolt

Ryan Breslow has been reinstated as the Chief Executive Officer of Bolt, the fintech firm confirmed to TechCrunch on Wednesday.

A recent communication distributed to investors detailed the change in leadership. Breslow stated that, after a period of difficulties, he has resumed his position as CEO with the full backing of the board.

Leadership Transition

Justin Grooms, who has been serving as interim CEO since March of the previous year, will transition to the role of President at Bolt. Grooms previously held the position of Director of Sales for the company.

He assumed the CEO role following the removal of Maju Kuruvilla by the board of directors.

Past Controversies and Legal Battles

Breslow, the vocal founder of Bolt, initially stepped down from the CEO position in early 2022.

During his previous tenure, he faced accusations of misleading investors and breaching security regulations through the exaggeration of key performance indicators during fundraising efforts.

Furthermore, Breslow was involved in a legal dispute with investor Activant Capital concerning a $30 million loan.

In September, Bolt announced a settlement with Activant Capital. The terms of the agreement involved Bolt repurchasing Activant’s shares, effectively ending Activant’s ownership stake in the company.

Investor Communication and Funding Attempts

In his message to investors, Breslow expressed his appreciation for their ongoing “support and encouragement” and acknowledged the dedication of Bolt’s employees.

Last year, Bolt reportedly pursued a funding round of $200 million in equity, alongside an additional $250 million in “marketing credits,” aiming for a company valuation of $14 billion.

The reinstatement of Breslow as CEO was contingent upon securing this funding. However, by September, the deal appeared to have stalled.

Bolt has declined to comment on the status of the fundraise.

Financial Performance and Valuation

As of the end of March 2024, Bolt’s annualized run rate stood at $28 million in revenue, with a gross profit of $7 million, according to reports from journalist Eric Newcomer.

A $14 billion valuation would represent a significant multiple of these figures, exceeding the $11 billion valuation achieved in January 2022.

Bolt's Funding History

Bolt provides software solutions designed to streamline the checkout process for retailers.

The company has secured approximately $1 billion in venture funding and was once valued at $11 billion.

Key investors include funds managed by BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, and Moore Strategic Ventures, among others.