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  • Frank Tian

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.

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