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How it works

How Laplace works.

A clear path from a stuck startup toward a cash-flow positive business, run by operators and structured to align founders, investors, and team.

The problem

The Deadlock.

Venture funding is built for one outcome: hypergrowth. When the growth arrives real but short of venture-scale, two doors close at the same time.

1.A startup raises on a venture outcome and burns capital sized for "all or nothing" outcomes.
2.The growth comes in short of venture-scale, and the unit economics is stuck in the "all or nothing" burn rate.
3.Run rate diminishes, unit economics cause revenue stagnation, venture ecosystem contracts.
4.Challenging unit economics make profitability seem impossible, no new funding opportunities, need money to fix problems, but current market is not built for these assets.

Laplace calls this the “Deadlock”. Many startups face this today.

Scale beforemarginCash pressurebuildsOptionalitynarrowsTHEDEADLOCKA good company trappedbetween scale and realityRevenue is real.The structure is wrong.Built forHypergrowthCost base sized forventure scaleRevenue Comes In,But ShortGrowth is real, butbelow scale needsCan’t Raise AgainThe next rounddepends on a biggerstoryCan’t Reach ProfitBurn, team, and captable were builtfor scale
How Laplace works

We are intentionally built for this.

Engagement roadmap
01
Diligence
Diligence process through the lens of operators.
02
Key impact levers
We find the biggest barriers to profitability.
03
Integration playbook
We create a custom playbook using capital and operator resources.
04
Aligned terms
Laplace carries the risk and executes.
Integration playbook
Seed → Series A operators · hands-on buildersOperator BenchProduct &TechnologyGTM (Sales,Marketing& Brand)Finance/CFOOperationsAI IntegrationTreasuryLaplace CapitalHoldCo · Evergreen FundAcquisition$$ + Operator InjectionDistressed StartupCash Flow NegativeConversionProfitable StartupCash Flow PositiveGrowth reinvestment% of Profits
The model

Acquire. Reset. Operate. Compound.

01
Intake
We assess the company against a clear set of criteria, fast.
02
Decision
A fast yes or a fast no. We do not leave founders waiting.
03
Reset
We take a controlling stake, clear the broken cap structure, and reset the cost base.
04
Operate
Operators go into the business from Day 1, accountable for the turn.
05
Convert
We work the company from cash-flow negative toward positive.
06
Compound
Cash flow is reinvested, and the holdco compounds over time.
Fit

What we look for.

What we look for

A profile, not a checklist

Post-revenue, with paying B2B customers and a product that works.
A services or human layer that is the moat, the part that cannot be automated away.
A cost base and cap table a reset can fix.
Cash-flow negative, but on a fixable path, not a broken business.
A founder still engaged, and a team and customers worth keeping.

What we don’t touch

Out of scope, by design

Pre-revenue or pre-product.
Deep tech, hardware, or capital-intensive models.
Consumer, crypto, or heavily regulated categories.
Pure SaaS with no services layer.
Outside the US.
Krishan Patel, Founder and General Partner
Krishan Patel
Founder and General Partner
The GP

Operator who has been there.

Krishan Patel is an operator-investor who has spent the past six years on both sides of the table, scaling startups by hand and underwriting them as a venture investor. Laplace is built on what that blend taught him: that most good companies do not die from a bad product, but from a structure no one had the time or the control to fix.

Operator-investorSeed → Series BB2B & tech-enabled
The bench

Our Ethos.

Because Laplace’s bench goes into the business with the mandate to fix what is broken in distressed venture contexts. We built our team specifically to drive the functions of Seed to Series A turnarounds.

Operators, not advisors

The custom integration playbook allows operators to fully drive their roles to complete special projects and manage workflows with full accountability.

Stage-matched operators

People who have run this exact function at Seed to Series A, wired for the messy stage these companies are in, not enterprise playbooks that do not fit.

Player-coaches

They have built departments from 0-1, work with first principles, and have scaled startups in their own careers.

A standing bench

Whatever the startup needs, Laplace can pull from any operator from its bench to drive execution.

The goal

We do the hard part, then let the team run it.

Laplace operates hands-on through the turnaround. Once the company holds, the team takes the day to day and drives the growth, while Laplace steps back from operating but stays behind it, with strategy, hands-on help, and capital when it’s needed.

Day to day
Laplace steps back from operating
From day 1
Turnaround
Laplace operates, hands-on
Once it holds
Steady state
The team runs it, and drives the growth
Throughout
Laplace backs it the whole way
Strategic and tactical support, and capital when needed
Day 1The goal: a profitable company its team runs
Questions

Common questions.

How much equity control does Laplace usually take?+

As a holding company, we take a controlling stake in the business, generally up to 80 percent. We take control because we take on the risk of the turnaround.

What makes a company a "hidden winner"?+

A solid team, real product-market fit, and a sound business model with room to grow. A company that was steered in the wrong direction by investors after being judged not venture-scalable, rather than one with a broken product.

How fast can you issue an LOI after first contact?+

It depends on the complexity of the deal and the assessment. Cleaner, more competitive deals will typically receive an LOI within 30 days.

How are founders and key employees compensated post-acquisition?+

Laplace purchases the asset in cash. Compensation for the team depends entirely on the terms and circumstances agreed with the founders and the selling entity.

Do founders have to stay on after the sale?+

We prefer to retain as much of the company as possible after acquisition. We are also flexible, and can put together a founder exit strategy where that is the better path.

What deal sizes and revenue ranges fit your model?+

$500K - $3M in ARR (Gross), deal size dependent on diligence underwriting and level of distress.

Which industries or business models are out of scope?+

Deep tech, heavily regulated industries, and companies that need intensive capital and long timelines to deliver.

What role does the operator bench play day-to-day?+

As part of the integration playbook, the bench runs strategic and tactical support in the areas of the business that need it most.

What determines success in the first year post-close?+

Our north star is net profit. The goal is to reach cash-flow even or positive by the eighteenth month.

How should founders or advisors start a conversation?+

Fill out our form, or reach out directly to our GP, Krishan Patel.

From here

Two doors from here.

Whether you are the founder or the investor, the next step is the same: a conversation.