// STARTUP COMPARISON
EasySi vs Silicon Valley Bank
EasySi failed in 2019 due to Ran Out of Money. Silicon Valley Bank failed in 2023 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 EasySi | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Mexico | USA |
| Founded | 2015 | 1983 |
| Died | 2019 | 2023 |
| Raised | $8M | Public company (SIVB) |
| Peak | $8M raised | $209B assets |
| Primary Cause | Ran Out of Money | Unit Economics |
// WHY EACH FAILED
🔥 EasySi
Ran Out of Money
EasySi provided working capital loans to Mexican small businesses. After raising $8M it scaled aggressively but Mexico's 2019 economic contraction raised default rates above sustainable levels. Unable to raise a Series B in a deteriorating macro environment, EasySi shut down in 2019.
// LESSON
SME lending in emerging markets is highly sensitive to macro cycles. Build capital buffers for 2x your expected default rate before scaling. The cycle always turns.
SME lending in emerging markets is highly sensitive to macro cycles. Build capital buffers for 2x your expected default rate before scaling. The cycle always turns.
🔥 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