// STARTUP COMPARISON
Chekout vs Silicon Valley Bank
Chekout failed in 2022 due to Competition. Silicon Valley Bank failed in 2023 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Chekout | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Chile | USA |
| Founded | 2019 | 1983 |
| Died | 2022 | 2023 |
| Raised | $12M | Public company (SIVB) |
| Peak | $12M raised | $209B assets |
| Primary Cause | Competition | Unit Economics |
// WHY EACH FAILED
🔥 Chekout
Competition
Chekout built a buy-now-pay-later checkout solution for Chilean e-commerce merchants. After raising $12M, MercadoLibre's Mercado Crédito launched BNPL functionality embedded directly into MercadoLibre's marketplace — where most Chilean e-commerce happens. Simultaneously Falabella launched CMR Cuotas for its marketplace. Chekout's addressable market collapsed to independent stores without marketplace presence. Unable to raise a Series B, it shut down in 2022.
// LESSON
BNPL for e-commerce is dependent on where e-commerce happens. In markets where one marketplace controls 60%+ of volume, when that marketplace integrates BNPL natively, your TAM shrinks to 40% overnight. Build for that scenario from day one.
BNPL for e-commerce is dependent on where e-commerce happens. In markets where one marketplace controls 60%+ of volume, when that marketplace integrates BNPL natively, your TAM shrinks to 40% overnight. Build for that scenario from day one.
🔥 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