All autopsies

// STARTUP COMPARISON

Greensill Capital vs LendingClub (2016 crisis)

Greensill Capital failed in 2021 due to Fraud. LendingClub (2016 crisis) failed in 2016 due to Founder Chaos. Different causes, different sectors, different eras — but the same simulation outcome.

METRIC🔥 Greensill Capital🔥 LendingClub (2016 crisis)
SectorFintechFintech
CountryUKUSA
Founded20112006
Died20212016
Raised$1.7B$1.3B
Peak$7B valuation$9B valuation
Primary CauseFraudFounder Chaos

// WHY EACH FAILED

🔥 Greensill Capital
Fraud
Greensill Capital provided supply-chain financing by buying invoices and bundling them as bonds sold via Credit Suisse funds. The model relied on trade credit insurance that was cancelled in March 2021. Without insurance the structure collapsed. Greensill filed for insolvency in March 2021. Credit Suisse lost $10B. Lex Greensill faced fraud investigations. David Cameron, who lobbied for Greensill, faced public scrutiny.
// LESSON
A business model with a single external dependency that can be cancelled overnight is a scheduled failure. Diversify or accept the concentration risk explicitly.
🔥 LendingClub (2016 crisis)
Founder Chaos
LendingClub CEO Renaud Laplanche resigned in May 2016 after an internal review found that $22M in loans had been sold to an investor with falsified application dates, and that Laplanche had failed to disclose a personal conflict of interest. The stock fell 50% in a single day. LendingClub survived but spent years rebuilding institutional trust.
// LESSON
For marketplace lenders, loan data integrity is the product. Falsifying origination dates is not a compliance technicality — it invalidates every institutional investor's credit risk model and destroys the trust that marketplace lending is built on.

// IN THE SIMULATION

Greensill triggers SINGLE_DEPENDENCY_FAILURE when INSURANCE_CANCELLED fires. The simulation flags business models with a single point of failure — one cancelled contract should never be able to destroy a $7B company overnight.

LendingClub triggers FINTECH_FOUNDER_DATA_MANIPULATION — the simulation models loan data integrity as a hard constraint for marketplace lenders. When origination data is falsified, every institutional investor's credit model becomes invalid simultaneously.

// EXPLORE FURTHER