// STARTUP COMPARISON
Increase (Argentina) vs Wealthfront (acquisition collapse)
Increase (Argentina) failed in 2022 due to Founder Chaos. Wealthfront (acquisition collapse) failed in 2022 due to Acquisition Gone Wrong. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Increase (Argentina) | 🔥 Wealthfront (acquisition collapse) |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Argentina | USA |
| Founded | 2015 | 2008 |
| Died | 2022 | 2022 |
| Raised | $20M | $204M |
| Peak | $20M raised | $1.4B valuation |
| Primary Cause | Founder Chaos | Acquisition Gone Wrong |
// WHY EACH FAILED
🔥 Increase (Argentina)
Founder Chaos
Increase built a payment reconciliation platform for Argentine businesses processing card payments. After raising $20M and growing to 3,000 business customers, a co-founder dispute over strategy and equity split emerged in 2022. The conflict became irreconcilable, leading to the departure of key technical co-founders and a significant loss of product development capacity. The company never recovered its pre-conflict velocity.
// LESSON
Co-founder agreements must specify conflict resolution mechanisms before the conflict exists. By the time a co-founder dispute is irreconcilable, the damage to the team and product is already done.
Co-founder agreements must specify conflict resolution mechanisms before the conflict exists. By the time a co-founder dispute is irreconcilable, the damage to the team and product is already done.
🔥 Wealthfront (acquisition collapse)
Acquisition Gone Wrong
UBS agreed to acquire Wealthfront for $1.4B in January 2022. Nine months later, UBS cancelled the deal citing changed market conditions. The acquisition collapse left Wealthfront in limbo — unable to raise at its previous valuation, the founding CEO resigned, and the company was acquired by a holding company at a significantly reduced valuation.
// LESSON
A cancelled acquisition is worse than no acquisition offer. The deal process exposes financial details to the acquirer, anchors valuation expectations for future investors, and demoralizes the team. Build an acquisition process that terminates quickly or not at all.
A cancelled acquisition is worse than no acquisition offer. The deal process exposes financial details to the acquirer, anchors valuation expectations for future investors, and demoralizes the team. Build an acquisition process that terminates quickly or not at all.
// EXPLORE FURTHER