// STARTUP COMPARISON
Increase (Argentina) vs Wirecard
Increase (Argentina) failed in 2022 due to Founder Chaos. Wirecard failed in 2020 due to Fraud. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Increase (Argentina) | 🔥 Wirecard |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | Argentina | Germany |
| Founded | 2015 | 1999 |
| Died | 2022 | 2020 |
| Raised | $20M | Public (DAX) |
| Peak | $20M raised | €24B market cap |
| Primary Cause | Founder Chaos | Fraud |
// 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.
🔥 Wirecard
Fraud
Wirecard, a DAX-listed German payment processor, admitted in June 2020 that €1.9B supposedly held in Philippine bank accounts did not exist. Auditor EY had signed off for nine years. The Financial Times had raised doubts for years. CEO Markus Braun was arrested. COO Jan Marsalek fled to Russia and remains a fugitive.
// LESSON
A DAX listing is not due diligence. If cash balances cannot be independently verified, they do not exist. Auditors sign documents, not reality.
A DAX listing is not due diligence. If cash balances cannot be independently verified, they do not exist. Auditors sign documents, not reality.
// EXPLORE FURTHER