Committed to delivering capital to great companies
The word Leela is Sanskrit for “the playful creation of the cosmos”.
For the past 5 years LC has been looking at small cap acquisitions and venture capital raising in the UK.
Deals that drew our focus were assets that had some exceptional opportunity of growth but required some initial restructuring.
Current investment strategies find it difficult to group venture and distress deals into their asset classes, showing an equity gap to be filled
LC will be leading investment into a new asset class: Distress Venture
High growth companies with investors seeking 50%+ IRR
- TAM was overestimated
- Founding team change
- Competitor aggressively funded
- Poor unit economics
- Quicker diminishing returns
- Slower traction in new markets
- Bad senior hire
- Other externalities
High growth companies requiring stabilisation
When a venture business hits these hurdles, they are penalised through shortening of cash runway; risk of securing new funding and limited valuation growth.
Distressed Venture solves this by maximising product fit and positive unit economics to stabilise near-term cashflow whilst maintaining long-term strategic goals
Securitise investment typically by restructuring debt or by special situation disposal
Companies that have not achieved profitability
Capital currently being deployed
Seeking alternative capital