// STARTUP COMPARISON
Lilium vs Silicon Valley Bank
Lilium 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 | 🔥 Lilium | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Hardware | Fintech |
| Country | Germany | USA |
| Founded | 2015 | 1983 |
| Died | 2023 | 2023 |
| Raised | €1.5B | Public company (SIVB) |
| Peak | €3.4B SPAC valuation (2021) | $209B assets |
| Primary Cause | Unit Economics | Unit Economics |
// WHY EACH FAILED
🔥 Lilium
Unit Economics
Lilium developed an electric vertical takeoff and landing (eVTOL) jet with 7 seats and 300km range. Post-SPAC listing at €3.4B, the company faced an engineering reality: its battery density requirements exceeded current lithium-ion technology. Each test aircraft consumed 3× the projected energy. The FAA and EASA certification process required 50,000+ test hours that Lilium hadn't budgeted for. Pre-revenue, burning €100M/year, unable to raise a further €400M needed for certification, Lilium filed for insolvency in October 2023. No commercial flight ever operated.
// LESSON
SPAC investors funded a 10-year technology roadmap as if it were a 3-year product launch. The battery technology required for Lilium's 300km range didn't exist and couldn't be bought. Charismatic founders and rendered concept videos are not substitutes for physics.
SPAC investors funded a 10-year technology roadmap as if it were a 3-year product launch. The battery technology required for Lilium's 300km range didn't exist and couldn't be bought. Charismatic founders and rendered concept videos are not substitutes for physics.
🔥 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