Default Alive
Also called Default Dead
A framing from Paul Graham: a startup is default alive if, on its current growth and burn, it would reach profitability before the money runs out, and default dead if it would not.
Why it matters
Knowing which one you are changes every decision. Default dead means you must fix growth or costs or raise now; default alive gives you the freedom to invest from a position of strength.
For example
A startup growing 10 percent a month with six months of runway realises that at its current trajectory it reaches profitability first, so it is default alive.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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