// STARTUP COMPARISON
Finkargo vs Silicon Valley Bank
Finkargo failed in 2023 due to Unit Economics. Silicon Valley Bank failed in 2023 due to Unit Economics. Both failed for the same reason — Unit Economics.
| METRIC | 🔥 Finkargo | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Colombia | USA |
| Founded | 2021 | 1983 |
| Died | 2023 | 2023 |
| Raised | $30M | Public company (SIVB) |
| Peak | $30M raised | $209B assets |
| Primary Cause | Unit Economics | Unit Economics |
// WHY EACH FAILED
🔥 Finkargo
Unit Economics
Finkargo provided supply chain financing to Colombian SMEs importing goods, allowing them to finance international purchase orders. After raising $30M, rising global interest rates in 2022-2023 increased Finkargo's cost of capital while simultaneously increasing default rates as import businesses struggled with currency depreciation and higher shipping costs. The company shut down in 2023.
// LESSON
Import trade finance has triple macro exposure: USD funding costs, local currency depreciation, and global shipping disruption. Model all three simultaneously at stress levels before underwriting a single loan.
Import trade finance has triple macro exposure: USD funding costs, local currency depreciation, and global shipping disruption. Model all three simultaneously at stress levels before underwriting a single loan.
🔥 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