// STARTUP COMPARISON
EBANX (2022 crisis) vs Silicon Valley Bank
EBANX (2022 crisis) failed in 2022 due to Unit Economics. Silicon Valley Bank failed in 2023 due to Unit Economics. Both failed for the same reason — Unit Economics.
| METRIC | 🔥 EBANX (2022 crisis) | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Brazil | USA |
| Founded | 2012 | 1983 |
| Died | 2022 | 2023 |
| Raised | $430M | Public company (SIVB) |
| Peak | $1B+ valuation | $209B assets |
| Primary Cause | Unit Economics | Unit Economics |
// WHY EACH FAILED
🔥 EBANX (2022 crisis)
Unit Economics
EBANX, Brazil's leading cross-border payment platform enabling global merchants to accept LatAm payments, raised $430M and reached unicorn status. In 2022 rising interest rates globally and a Brazil-specific macroeconomic slowdown compressed EBANX's take rates and increased its cost of capital. The company laid off 30% of its workforce — approximately 900 people — and restructured. The company survived but at reduced scale.
// LESSON
Cross-border payment platforms in emerging markets carry FX volatility risk, local interest rate risk, and global rate risk simultaneously. Stress-test all three at the same time before sizing the team. When macro moves, all three move together.
Cross-border payment platforms in emerging markets carry FX volatility risk, local interest rate risk, and global rate risk simultaneously. Stress-test all three at the same time before sizing the team. When macro moves, all three move together.
🔥 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