// STARTUP COMPARISON
Silicon Valley Bank vs Deliberry
Silicon Valley Bank failed in 2023 due to Unit Economics. Deliberry failed in 2017 due to Competition. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Silicon Valley Bank | 🔥 Deliberry |
|---|---|---|
| Sector | Fintech | Marketplace |
| Country | USA | Spain |
| Founded | 1983 | 2014 |
| Died | 2023 | 2017 |
| Raised | Public company (SIVB) | €15M |
| Peak | $209B assets | €15M raised |
| Primary Cause | Unit Economics | Competition |
// WHY EACH FAILED
🔥 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.
🔥 Deliberry
Competition
Deliberry built on-demand grocery delivery in Barcelona and Madrid in 2014-2017, years before quick commerce became mainstream. The company achieved strong customer satisfaction but faced two existential threats simultaneously: Amazon launched Amazon Fresh in Spain, and Deliveroo and Glovo entered the market with deep pockets. Unable to compete with Amazon's logistics infrastructure or Glovo's VC funding, Deliberry shut down in 2017.
// LESSON
Grocery delivery is a logistics war, not a product war. When Amazon enters your category, the competitive advantage you built on product quality becomes irrelevant — they simply out-execute and out-spend you.
Grocery delivery is a logistics war, not a product war. When Amazon enters your category, the competitive advantage you built on product quality becomes irrelevant — they simply out-execute and out-spend you.
// IN THE SIMULATION
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.
Deliberry triggers AMAZON_ENTRY_GAME_OVER — the simulation models grocery delivery markets as non-survivable for sub-scale operators the moment Amazon activates its logistics infrastructure in the same geography.
// EXPLORE FURTHER