Payments unicorn Bolt Financial shocked investors last week with its plan to raise $450 million at a $14 billion valuation. However, the company’s CEO, Justin Grooms, has now caused further confusion by threatening veiled legal action against the investment bank mistakenly named as the round’s main investor: Silverbear Capital. Despite Silverbear Capital signing a binding term sheet committing $200 million, founder Peter Chun claimed to be unaware of the round and denied any involvement with Bolt.
Investor documents viewed by Forbes identified Silverbear and its partner Brad Pamnani as leading the deal, despite Pamnani not being authorized to make such agreements. Pamnani, who claims to manage a $6.7 billion portfolio, attributed the mistake to a broker who mistakenly named Silverbear Capital as the lead investor. The broker, AMA Investment Group, took responsibility for the error and committed to uploading corrected documents in the near future.
Following reports about Silverbear’s involvement, Grooms sent shareholders an email stating that discussions with lead investors were ongoing and promising a more material update soon. Pamnani claimed that he is managing an Abu Dhabi-based fund that is actually leading the Bolt round, but declined to provide details about the fund or its registration status. Grooms reiterated the company’s commitment to securing funding and claimed that Bolt had forced a previous investor trying to back out of a round to remain accountable for their pledge.
Grooms also adjusted the terms of Bolt’s Series F round, extending the deadline for investors to commit and reducing the size of the pro-rata pool. He also reiterated plans to raise $250 million in “marketing credits” from The London Fund, a venture capital firm. Despite concerns raised by Bolt’s updated financials, which showed significant losses and declining revenues in 2023, Grooms remained confident in the company’s future prospects.
The ongoing confusion surrounding Silverbear Capital’s involvement in Bolt’s fundraising round has created uncertainty for investors. Grooms’ threat of legal action and conflicting statements from Pamnani and Chun have added to the complexity of the situation. As discussions with lead investors continue, Bolt is facing pressure to secure the necessary funding to uphold its valuation and move forward with its growth plans. Investors will be anxiously awaiting further updates and clarity on the company’s financial position.
