A startup status coined by Paul Graham: a company that will reach profitability with current cash and current growth rate, before running out of money. The opposite of "default dead."
A default-alive startup does not need to raise to survive. Compute constantly: at current burn and current growth, will I become profitable before runway runs out? In 2026, VCs heavily favor default-alive companies.
Default Alive: Months to profitability < Runway months remainingDefault alive from year 2 — never raised from desperation
Paul Graham regularly asks founders this question at office hours
Default alive means you have leverage. Default dead means investors set your terms.
Cash, monthly net burn, MRR growth rate. If MRR growth × gross margin reaches monthly burn before cash runs out, you are default alive.
Yes — but only on great terms. Default alive means you can walk from any term sheet.
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