The Test of 3 Recessions
At the height of the 2008 Great Financial Crisis,
I learned the following from a Chief Risk Officer.
The recession is a good time to test the viability of a financial product.
A product is successful if it can survive 3 recessions.
Why 3? Because every recession is different.
The same thing can be said about a business model.
SVB survived the dot-com bubble.
It survived the Great Financial Crisis.
But it did not survive the first broad contraction of tech and economy - the equivalent of dot com plus financial crisis.
The experience is great.
But, only relying on it is not enough,
Especially in today’s fast-evolving world.