**Bullish on Bolt: The London Fund’s $450 Million Raise**
Ashesh Shah, the founder and CEO of The London Fund, is confident about the future of Bolt, a one-click checkout startup. The London Fund, a U.K. venture firm with over $1 billion in cash and assets, is leading a proposed $450 million raise for Bolt. Despite the controversies surrounding the company, Shah sees great potential in Bolt and describes the term sheet for the proposed transaction as “a fabulous transaction.” In an interview, Shah explains why he believes Bolt is a hidden gem and why he is optimistic about the deal’s approval.
**A Hidden Gem: Bolt’s Unbelievable Reach**
According to Shah, Bolt has an impressive reach, comparable to that of major players like Shopify. He emphasizes the number of wallets and people who have used Bolt’s system, highlighting its potential as a hidden gem. Shah also mentions the opportunity for interactions between wallet holders, especially with the launch of the Super App. He believes that both Bolt and Shopify have massive user bases, presenting a significant opportunity for growth.
**Commitment to the Future: Shareholders’ Role**
Shah expresses the importance of existing shareholders showing their commitment to Bolt’s future. He believes that the proposed transaction can bring a lot of value to all shareholders and urges them to join in. While acknowledging that the deal is not yet final, Shah hopes that it will be approved, as there has been extensive thinking and work put into it. He also mentions the possibility of other investors coming in with capital, emphasizing that there is plenty of room for growth.
**Marketing Services in Lieu of Cash: Tactical Capital**
As part of the proposed transaction, The London Fund would be contributing $250 million. Instead of cash, Shah explains that they provide tactical capital with a real impact on the company. He mentions offering marketing credits, which can be used as a cash equivalent. The fund also has influencers and media as limited partners, allowing them to offer visibility and co-marketing funds to companies like Bolt. Shah compares this approach to a barter system, similar to OpenAI’s collaboration with Microsoft for compute on Azure.
**Full Alignment and Core Assets: The London Fund’s Approach**
The London Fund believes in full alignment between their limited partners and the companies they invest in. Shah highlights their lack of a 2% fee, emphasizing their alignment with the success of their investments. They focus on companies with core assets, such as wallets, transactions, and users, believing that these assets can be leveraged for great results.
**Ryan Breslow’s Vision as CEO**
Shah expresses the importance of Ryan Breslow returning as CEO of Bolt, praising his foresight in creating a system that benefits both retailers and consumers. He compares Breslow’s achievements with those of Revolut and Shopify, highlighting the speed at which Bolt has grown. Shah believes that Breslow’s vision is essential for the continued growth of the business.
Overall, Shah is confident about the proposed transaction and hopes that it will be approved. He sees it as a path to a higher return for all shareholders and a way forward for Bolt’s future success.