Default Alive
DEFINITION
A startup is Default Alive if its current revenue growth will carry it to profitability before the money runs out — without raising more.
In depth
Coined by Paul Graham. Run the simulation: if you continue your current growth rate and never raise another dollar, do you reach positive cash flow before you run out of cash? If yes, Default Alive. If no, Default Dead.
Almost every early-stage founder assumes they are Default Alive. Most aren't. Doing this math monthly is one of the highest-leverage exercises a founder can run.
Related terms
Sources
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Last reviewed 14 April 2026 by Abhi Verma.