Bolt Threatens Legal Action Against Silverbear Capital Over Alleged Dispute

In the latest development in Bolt’s aggressive fundraising efforts, the fintech company’s CEO, Justin Grooms, has made a veiled threat of legal action against Silverbear Capital, the investment bank whose involvement in the deal remains shrouded in controversy.

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Internal Miscommunication at Silverbear Capital?

According to an email reportedly viewed by Forbes, Grooms wrote: "We believe there was some internal miscommunication at Silverbear Capital, one of our lead investors, which has caused unnecessary confusion. The fact is, they signed a binding term sheet committing $200 million. Our exceptional legal team at Gibson, Dunn & Crutcher stands ready to represent the company in seeking to enforce our rights vigorously."

When asked for comment, Bolt did not immediately respond. However, Silverbear partner Veronica Welch told Forbes that "this never had anything to do with any miscommunications" and that the deal "was never discussed or approved in the company."

Leaked Term Sheet Reveals Unusual Deal Structure

Earlier this month, a leaked term sheet showed that Bolt was aiming to raise $200 million in equity funding and $250 million in "marketing credits" at a $14 billion valuation. This unusual pay-to-play deal structure would essentially force existing backers to either invest or lose their stakes in the company.

Initially, Silverbear was reported to be leading the equity round; however, Brad Pamnani, partner at Silverbear, recently told TechCrunch that his firm is actually putting the deal together through a special purpose vehicle (SPV) managed by a private equity fund based in the United Arab Emirates. "At the beginning, I used my Silverbear email to respond to some things and that caused some confusion," Pamnani said. "Silverbear was never actually looking at this deal."

London Fund’s Involvement: Marketing Credits or More?

Meanwhile, the London Fund’s CEO confirmed in an interview with TechCrunch that the firm is contributing "marketing credits" to the deal. However, the London Fund released a statement on Friday saying that it has not seen and cannot confirm the validity of any part of a document leaked to the press.

"We can confirm that there have been discussions between The London Fund and Bolt’s management; however, at no point have we stated that a transaction has concluded," the firm said.

Questions Remain: What’s Next for Bolt and Its Investors?

As Bolt continues its fundraising efforts, questions remain about the company’s deal structure and the involvement of various investors. Will the CEO’s veiled threat against Silverbear Capital escalate tensions or lead to a resolution? Only time will tell.