Bolt CEO Moves from Founder Mode to Grift Mode
Not all founders are ethical, and I think this is a case in point here.
It's one thing to attract a new investor who is willing to put money in when the company is about to go out of business. That new investor will often "cram down" existing investors because - well - last money in is often the first money out in a term called "liquidation preferences." If this is truly the lender of last resort, the cap table and ownership shares structure can be reset as well.
But this is far beyond normal.
Even on a business level, we are not creating a checkout and identity network any longer. We are building a super app. Because why not? It's house money at this point.
First, how do you raise $250M in "marketing credits". Why not a billion? The value is unspecified. This sets the tone for the whole thing.
Second, the new investor thinks Bolt is bigger than Stripe? There's a sucker born every minute I suppose. We are going to find out this "new investor" is on the take from Breslow. Just wait.
Third, $28 M in revenue (which you have to bet is rapidly declining) on any valuation greater than $250M for this company is nonsense. I thought they signed Fanatics? At the top of Fanatics checkout is Paypal and no Bolt identity network. Likely this is not an accident. I question the $28M.
But this is not even the worst of it.
For all this, Breslow wants a $2M salary and a $1M bonus for coming back. Well, I want a pink unicorn but that doesn't make any sense either. 🦄
He wants a stock kicker if he can increase the ridiculous valuation even more.
He wants to increase the grift by partnering with some of his other companies like Love (dot) com.
All told, this is a ferriswheel of circus clowns and nonsense. But at least in this crazy world, we can get some entertainment out of it. 🎪
Almost sadly (which is the irony) our entertainment will be short-lived however because this "deal" is never going to close. And if it did, the number of lawsuits from existing investors would pile to the sky.
