// STARTUP COMPARISON
Carillion vs Scytl
Carillion failed in 2018 due to Unit Economics. Scytl failed in 2020 due to Ran Out of Money. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Carillion | 🔥 Scytl |
|---|---|---|
| Sector | SaaS | SaaS |
| Country | UK | Spain |
| Founded | 1999 | 2001 |
| Died | 2018 | 2020 |
| Raised | Public company | $100M |
| Peak | £5.2B revenue · 43,000 employees | Elections in 42+ countries |
| Primary Cause | Unit Economics | Ran Out of Money |
// WHY EACH FAILED
🔥 Carillion
Unit Economics
Carillion was the UK's second-largest construction and services company with £5.2B revenue and thousands of government contracts. It carried £1.5B in pension deficits and £900M in debt. Three profit warnings in 2017 exposed structural insolvency. It entered compulsory liquidation in January 2018 — the largest ever UK trading liquidation — leaving 43,000 employees and thousands of subcontractors unpaid.
// LESSON
Revenue is not solvency. A company with £5.2B in revenue and £2.4B in combined pension and debt obligations is not viable — it is a zombie awaiting a trigger event.
Revenue is not solvency. A company with £5.2B in revenue and £2.4B in combined pension and debt obligations is not viable — it is a zombie awaiting a trigger event.
🔥 Scytl
Ran Out of Money
Scytl was the world's leading provider of election technology, having processed votes in over 42 countries. It raised $100M from Vulcan Capital and others. In 2020 COVID-19 caused the cancellation or postponement of hundreds of elections globally — Scytl's entire revenue base. Unable to survive the collapse, Scytl filed for insolvency in June 2020 and was acquired by Paragon Group.
// LESSON
Market leadership in an event-driven market is concentrated risk, not a moat. When the event cycle pauses globally, your entire revenue base pauses with it. Diversify revenue streams before a black swan can.
Market leadership in an event-driven market is concentrated risk, not a moat. When the event cycle pauses globally, your entire revenue base pauses with it. Diversify revenue streams before a black swan can.
// EXPLORE FURTHER