// STARTUP COMPARISON
Silicon Valley Bank vs Spotahome
Silicon Valley Bank failed in 2023 due to Unit Economics. Spotahome failed in 2020 due to Bad Timing. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Silicon Valley Bank | 🔥 Spotahome |
|---|---|---|
| Sector | Fintech | Proptech |
| Country | USA | Spain |
| Founded | 1983 | 2014 |
| Died | 2023 | 2020 |
| Raised | Public company (SIVB) | $80M |
| Peak | $209B assets | $80M raised |
| Primary Cause | Unit Economics | Bad Timing |
// 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.
🔥 Spotahome
Bad Timing
Spotahome built a platform for mid-term furnished rentals (1-12 months) targeting international students, expats, and digital nomads — all users whose movement required open borders and urban migration. COVID eliminated all three customer segments simultaneously: no international students, no corporate expats, no digital nomads. The company laid off 50% of staff in April 2020, pivoted to domestic rentals, and significantly scaled down.
// LESSON
When all your customer segments depend on the same macro condition (free cross-border mobility), your diversified customer base is actually a concentrated risk. Spotahome had students, expats, and nomads — and lost all three at once.
When all your customer segments depend on the same macro condition (free cross-border mobility), your diversified customer base is actually a concentrated risk. Spotahome had students, expats, and nomads — and lost all three at once.
// EXPLORE FURTHER