Bolt Probed by SEC, Investors Over Statements Made During Fundraising

The Securities and Exchange Commission subpoenaed e-commerce software startup Bolt and sent a notice to co-founder and former CEO Ryan Breslow last year over their past statements to current and potential investors, according to an April 2023 letter from a lawyer representing two of Bolt’s major investors.

Brian Reinken of WestCap Management and Arjun Sethi of Tribe Capital Management claim Breslow misled investors when he was raising Bolt’s $355 million Series E financing that valued the company at $11 billion in late 2021, according to the letter, which was sent to Bolt’s general counsel as part of a demand to inspect the company’s records. The shareholders are seeking to investigate “corporate wrongdoing” by Breslow and the board, the letter said. It said the SEC was investigating whether federal securities laws had been violated in connection with statements made when Bolt was raising money.