// STARTUP COMPARISON
Robinhood (GameStop crisis) vs Silicon Valley Bank
Robinhood (GameStop crisis) failed in 2021 due to Regulation. Silicon Valley Bank failed in 2023 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Robinhood (GameStop crisis) | 🔥 Silicon Valley Bank |
|---|---|---|
| Sector | Fintech | Fintech |
| Country | USA | USA |
| Founded | 2013 | 1983 |
| Died | 2021 | 2023 |
| Raised | $5.6B | Public company (SIVB) |
| Peak | $40B valuation | $209B assets |
| Primary Cause | Regulation | Unit Economics |
// WHY EACH FAILED
Retail brokers must hold capital reserves sized for maximum volatility clearinghouse requirements, not average-day requirements. In a meme-stock event, the clearinghouse margin requirement can increase 10x overnight. If you can't meet it, you halt trading and lose your users' trust.
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
Robinhood triggers CLEARINGHOUSE_MARGIN_CAPITAL_CRISIS — the simulation models retail brokers during high-volatility events as facing clearinghouse margin requirements that can exceed available capital in hours. The broker that can't meet margins has no choice but to halt trading.
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