All autopsies

// STARTUP COMPARISON

PerPule vs Silicon Valley Bank

PerPule failed in 2021 due to Acquisition Gone Wrong. Silicon Valley Bank failed in 2023 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.

METRIC🔥 PerPule🔥 Silicon Valley Bank
SectorFintechFintech
CountryIndiaUSA
Founded20161983
Died20212023
Raised$10MPublic company (SIVB)
Peak$10M raised$209B assets
Primary CauseAcquisition Gone WrongUnit Economics

// WHY EACH FAILED

🔥 PerPule
Acquisition Gone Wrong
PerPule built a checkout and billing SaaS for physical retail stores in India. After raising $10M, it was acquired by Amazon in 2019 as part of Amazon's push into physical retail in India. The technology was integrated into Amazon's retail operations, the PerPule product was discontinued, and the team was absorbed. The independent product ceased within 2 years of acquisition.
// LESSON
When Amazon acquires a retail technology company, they are buying the technology and the engineers, not the product. If your exit thesis depends on Amazon being a product-preserving acquirer, revise the thesis.
🔥 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.

// IN THE SIMULATION

PerPule triggers STRATEGIC_ACQUISITION_PRODUCT_TERMINATION — the simulation models acquisitions where the acquirer's goal is capability, not product continuation. Amazon acquires to build its own retail infrastructure, not to maintain a competing product.

SVB triggers DURATION_MISMATCH_BANK_RUN — the simulation models banks with long-duration bond portfolios as having existential rate sensitivity. A 400bps rate rise on a long-duration portfolio creates mark-to-market losses that exceed capital when forced to sell.

// EXPLORE FURTHER