// STARTUP COMPARISON
Better.com vs Silicon Valley Bank
Better.com failed in 2022 due to Founder Chaos. Silicon Valley Bank failed in 2023 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Better.com | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | USA | USA |
| Founded | 2014 | 1983 |
| Died | 2022 | 2023 |
| Raised | $1.4B | Public company (SIVB) |
| Peak | $7B valuation | $209B assets |
| Primary Cause | Founder Chaos | Unit Economics |
// WHY EACH FAILED
🔥 Better.com
Founder Chaos
Better.com CEO Vishal Garg fired 900 employees on a Zoom call in December 2021 — a PR disaster that dominated news cycles. The company then faced the mortgage market collapse as the Fed raised rates in 2022. With fewer mortgages originating, Better laid off thousands more employees and its SPAC IPO at $7B valuation ultimately priced at a fraction of that. The combination of leadership toxicity and macro timing destroyed the company's trajectory.
// LESSON
How you treat people in a downturn defines your brand permanently. The Zoom layoff of 900 people created a reputational liability that cost Better.com far more than the salary savings justified. Conduct is a compounding asset or liability — it compounds fastest in a crisis.
How you treat people in a downturn defines your brand permanently. The Zoom layoff of 900 people created a reputational liability that cost Better.com far more than the salary savings justified. Conduct is a compounding asset or liability — it compounds fastest in a crisis.
🔥 Silicon Valley Bank
Unit Economics
Silicon Valley Bank collapsed in March 2023 after a bank run driven by duration mismatch. SVB had invested deposits in long-duration bonds during low-rate periods. When rates rose, those bonds lost value. SVB announced a $1.8B loss on bond sales and a capital raise — triggering a $42B bank run in 24 hours. The FDIC seized SVB on March 10, 2023 — the second-largest bank failure in US history.
// LESSON
Asset-liability duration matching is not optional for banks. Investing short-term deposits in long-term bonds is a structural bet against rising rates. SVB had $80B in long-duration bonds when the Fed began the fastest rate rise cycle in 40 years.
Asset-liability duration matching is not optional for banks. Investing short-term deposits in long-term bonds is a structural bet against rising rates. SVB had $80B in long-duration bonds when the Fed began the fastest rate rise cycle in 40 years.
// EXPLORE FURTHER