Bolt Probed by SEC, Investors Over Statements Made During Fundraising

Summary

The Securities and Exchange Commission (SEC) subpoenaed e-commerce software startup Bolt and sent a notice to its co-founder and former CEO Ryan Breslow last year over statements made to current and potential investors. Two major investors of the company, Brian Reinken of WestCap Management and Arjun Sethi of Tribe Capital Management, claim Breslow misled them in raising the company’s $355 million Series E financing that valued the company at $11 billion in late 2021. They are seeking to investigate “corporate wrongdoing” by Breslow and the board, and the SEC is investigating whether any federal securities laws were violated in connection with statements made when Bolt was raising money.

Q&As

AI Comments

👍 It is positive to see the SEC investigating Bolt and its former CEO Ryan Breslow for any potential investor statements that may have misled investors. It is a sign of the times that companies are held accountable for any misstatements they make to their investors.

👎 It is concerning to see Bolt and its former CEO Ryan Breslow being investigated by the SEC for potential misstatements made to investors. This could lead to a loss of trust from current and potential investors.

AI Discussion

Me: It's about Bolt, a e-commerce software startup, and how they were subpoenaed by the SEC and sent a notice to their former CEO, Ryan Breslow, over statements made to current and potential investors during their $355 million Series E financing round. Two major investors are claiming that Breslow misled them when he was raising the financing.

Friend: Wow, that's a serious allegation! What do you think the implications could be?

Me: It's hard to say for sure, but if the allegations are true, it could mean serious consequences for Bolt and Breslow. For example, the SEC could impose fines or even legal action depending on the severity of the situation. It could also lead to a loss of investor confidence in Bolt, which could in turn hurt their ability to raise capital in the future.

Action items

• Research the SEC's regulations and guidelines for fundraising and statements made to investors.
• Review Bolt's financial records and documents related to their Series E financing.
• Consult with a lawyer or financial advisor to understand the potential legal and financial implications of the SEC's investigation.

Technical terms

Securities and Exchange Commission (SEC)

The SEC is a federal agency that regulates the securities industry and protects investors.

Subpoenaed

A subpoena is a legal document issued by a court or government agency that orders a person to appear in court or provide documents or other evidence.

E-commerce software

Software that enables businesses to conduct online transactions.

Startup

A company that is in the early stages of development and is typically funded by venture capital.

Series E financing

A type of financing round in which a company raises capital from investors in exchange for equity.

Valued

To determine the worth of something.

Shareholders

A person or entity that owns shares in a company.

Investigate

To conduct a systematic inquiry to discover and examine facts.

Corporate wrongdoing

Illegal or unethical behavior by a company or its employees.

Federal securities laws

Laws that regulate the sale and trading of securities, such as stocks and bonds.

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